. 10 0
NOTESTOTHE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017
BAKER
TECHNOLOGY
L IMI TED
THE BE ST
I N US
2.
SUMMARYOF SIGNIFICANTACCOUNTINGPOLICIES (CONT’D)
2.18
Taxes (cont’d)
(c)
Sales tax
Revenues, expenses and assets are recognisednet of the amount of sales tax except:
– Where the sales tax incurredon a purchase of 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 the asset or as part of theexpense item as applicable; and
– Receivables andpayables that are statedwith the amount of sales tax included.
2.19
Sharecapital and share issueexpenses
Proceeds from issuance of ordinary shares are recognised as share capital in equity. Incremental costs
directly attributable to the issuanceof ordinary shares arededucted against sharecapital.
2.20
Contingencies
Acontingent liability is:
(a)
apossibleobligation that arises frompast events andwhoseexistencewill beconfirmedonlyby the
occurrenceornon-occurrenceofoneormoreuncertain futureeventsnotwhollywithin thecontrol
of theGroup; or
(b)
apresent obligation that arises frompast events but is not recognisedbecause:
(i)
it isnot probable that anoutflowof resourcesembodyingeconomicbenefitswill be required
to settle theobligation; or
(ii)
the amount of theobligationcannot bemeasuredwith sufficient reliability.
A contingent asset is a possible asset that arises from past events andwhose existence will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of theGroup.
Contingent liabilitiesandassetsarenot recognisedon thebalancesheetof theGroup, except forcontingent
liabilities assumed in a business combination that are present obligations andwhich the fair values can be
reliablydetermined.
