for the year ended 31 December 2016
NOTES TO THE
FINANCIAL STATEMENTS
Baker Technology Limited
-
101
-
2.
Summaryofsignificantaccountingpolicies (cont’d)
2.18
Taxes (cont’d)
(b)
Deferred tax (cont’d)
The carrying amount of deferred tax asset is reviewed at the endof each reportingperiod and reduced
to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or
part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at the end
of each reportingperiodandare recognised to theextent that it hasbecomeprobable that future taxable
profitwill allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities aremeasured at the tax rates that are expected to apply to 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.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or
loss. Deferred 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.
(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, inwhich case the sales tax is recognised as part of the cost of acquisitionof
the asset or as part of the expense item as applicable; and
– Receivables and payables that are statedwith the amount of sales tax included.
2.19
Share capital and share issue expenses
Proceeds from issuanceof ordinary shares are recognised as share capital in equity. Incremental costs directly
attributable to the issuance of ordinary shares are deducted against share capital.
