Baker Technology LimitedAnnual Report 2014
99
2.
Summaryof significant accountingpolicies (cont’d)
2.20
Taxes (cont’d)
(b)
Deferred tax (cont’d)
The carrying amount of deferred tax asset is reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable that sufficient taxable profit will be available
to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are
reassessedat theendof each reportingperiodandare recognised to theextent that it hasbecome
probable that future taxableprofitwill allow thedeferred taxasset tobe recovered.
Deferred tax assets and liabilities aremeasured at the tax rates that are expected to apply to the
year when the asset is realised or the liability is settled, based on tax rates and tax laws that have
beenenactedor substantivelyenactedat theendof each reportingperiod.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or
loss.Deferred tax itemsare recognised incorrelation to theunderlying transactioneither inother
comprehensive incomeordirectly inequityanddeferred taxarising fromabusiness combination
is adjusted against goodwill on acquisition.
(c)
Sales tax
Revenues, expenses andassets are recognisednet of theamount of sales taxexcept:
-
Where the sales tax incurredon apurchaseof assets or services is not recoverable from the
taxation authority, inwhich case the sales tax is recognised as part of the cost of acquisition
of theasset or aspart of theexpense itemas applicable; and
-
Receivables andpayables that are statedwith theamount of sales tax included.
The net amount of sales tax recoverable from, or payable to, the taxation authority is included as
part of receivablesor payables in thebalance sheet.
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31December 2014
