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Notes to the
financial statements
For the financial year ended 31 December 2018
94
B A K E R T E C H N O L O G Y
L I M I T E D
2.
Summary of significant accounting policies (cont’d)
2.22
Taxes (cont’d)
(c)
Sales tax
Revenues, expenses and assets are recognised net of the amount of sales tax except:
–
Where the sales tax incurred on a purchase of assets or services is not recoverable
from the taxation authority, in which case the sales tax is recognised as part of the
cost of acquisition of the asset or as part of the expense item as applicable; and
–
Receivables and payables that are stated with the amount of sales tax included.
2.23
Share capital and share issue expenses
Proceeds from issuance of ordinary shares are recognised as share capital in equity. Incremental
costs directly attributable to the issuance of ordinary shares are deducted against share capital.
2.24
Contingencies
A contingent liability is:
(a) a possible obligation that arises from past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly
within the control of the Group; or
(b) a present obligation that arises from past events but is not recognised because:
(i)
it is not probable that an outflow of resources embodying economic benefits will be
required to settle the obligation; or
(ii)
the amount of the obligation cannot be measured with sufficient reliability.
A contingent asset is a possible asset that arises from past events and whose existence will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the Group.
Contingent liabilities and assets are not recognised on the balance sheet of the Group, except for
contingent liabilities assumed in a business combination that are present obligations and which the
fair values can be reliably determined.