Notes to the Financial Statements
31 December 2015
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2.23 Taxes (cont’d)
(b)
Deferred tax (cont’d)
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tax items are recognised in correlation to the underlying transaction either in other comprehensive income
or directly in equity and deferred tax arising from a business combination is adjusted against goodwill on
acquisition.
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current income tax assets against current income tax liabilities and the deferred taxes relate to the same
taxable entity and the same taxation authority.
(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.
The net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the balance sheet.
2.24 Share capital and share issuance 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.
2.25 Contingencies
A contingent liability is:
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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:
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settle the obligation; or
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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.
HOCK LIAN SENG HOLDINGS LIMITED
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