for the year ended 31 December 2016
NOTES TO THE
FINANCIAL STATEMENTS
Annual Report 2016
-
102
-
2.
Summaryofsignificantaccountingpolicies (cont’d)
2.20
Contingencies
Acontingent liability is:
(a)
a possible obligation that arises from past events andwhose existencewill be confirmed only by the
occurrence or non-occurrence of one ormore uncertain future events not whollywithin the control of
theGroup; or
(b)
a present obligation that arises from past events but is not recognised because:
(i)
it isnot probable that anoutflowof resources embodyingeconomicbenefitswill be required to
settle the obligation; or
(ii)
the amount of the obligation cannot bemeasuredwith sufficient reliability.
Acontingent asset is a possible asset that arises frompast events andwhose existencewill be confirmedonly
by the occurrence or non-occurrence of one ormore uncertain future events not whollywithin the control of
theGroup.
Contingent liabilities and assets are not recognised on the balance sheet of theGroup, except for contingent
liabilities assumed in a business combination that are present obligations and which the fair values can be
reliably determined.
3.
Significantaccounting judgementsandestimates
The preparationof theGroup’s financial statements requiresmanagement tomake judgements, estimates and
assumptions that affect the reportedamountsof revenues, expenses, assetsand liabilities, and thedisclosureof
contingent liabilities at the reportingdate.However, uncertainty about these assumptions and estimates could
result in outcomes that require amaterial adjustment to the carrying amount of the asset or liability affected
in the future periods.
3.1
Judgementsmade in applying accounting policies
Themanagement is of the opinion that any instances of application of judgements are not expected to have a
significant effect on the amounts recognised in the financial statements.
