Hock Lian Seng Holdings Limited - Annual Report 2015 - page 59

Notes to the Financial Statements
31 December 2015
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2.23 Taxes
(a) Current income tax
Current income tax assets and liabilities for the current and prior periods are measured at the amount
expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to
compute the amount are those that are enacted or substantively enacted at the end of the reporting
period, in the countries where the Group operates and generates taxable income.
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periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax
regulations are subject to interpretation and establishes provisions where appropriate.
(b) Deferred tax
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purposes.
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- Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or
liability in a transaction that is not a business combination and, at the time of the transaction,
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- In respect of taxable temporary differences associated with investments in subsidiaries and
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future.
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losses can be utilised except:
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recognition of an asset or liability in a transaction that is not a business combination and, at the
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interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable
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The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to
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the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at the end of each
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will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when
the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the end of each reporting period.
ANNUAL REPORT 2015 57