NOTES TO THE FINANCIAL STATEMENTS
For The Financial Period From 1 January 2014 To 31 March 2015 (Cont’d)
74
Annual Report 2015
4.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.14 CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash in hand, bank balances, demand deposits, bank
overdrafts and short-term, highly liquid investments that are readily convertible to known amounts
of cash and which are subject to an insignificant risk of changes in value with original maturity
periods of three months or less.
During the current financial period, the Group excluded deposits pledged to financial institutions
from cash and cash equivalents for the purpose of the statements of cash flows. This change
has been applied retrospectively with an adjustment made against the opening balance of
the cash and cash equivalents as at 1 January 2013.
4.15 PROVISIONS
Provisions are recognised when the Group has a present obligation as a result of past events,
when it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation, and when a reliable estimate of the amount can bemade. Provisions are
reviewed at the end of each reporting year and adjusted to reflect the current best estimate.
Where the effect of the time value of money is material, the provision is the present value of
the estimated expenditure required to settle the obligation. The unwinding of the discount is
recognised as interest expense in profit or loss.
4.16 BORROWING COSTS
Borrowing costs, directly attributable to the acquisition, construction or production of a qualifying
asset are capitalised as part of the cost of those assets, until such time as the assets are ready
for their intended use or sale. Capitalisation of borrowing costs is suspended during extended
periods in which active development is interrupted.
All other borrowing costs are recognised in profit or loss as expenses in the period in which they
incurred.
Investment income earned on the temporary investment of specific borrowing pending their
expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
4.17 INCOME TAXES
Income tax for the period/year comprises current and deferred tax.
Current tax is the expected amount of income taxes payable in respect of the taxable profit for
the financial year and is measured using the tax rates that have been enacted or substantively
enacted at the end of the financial year.
Deferred tax is provided in full, using the liability method, on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the financial
statements.
Deferred tax liabilities are recognised for all taxable temporary differences other than those
that arise from goodwill or excess of the acquirer’s interest in the net fair value of the acquiree’s
identifiable assets, liabilities and contingent liabilities over the business combination costs or from
the initial recognition of an asset or liability in a transaction which is not a business combination
and at the time of the transaction, affects neither accounting profit nor taxable profit.
