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Notes to the
financial statements
For the financial year ended 31 December 2018
92
B A K E R T E C H N O L O G Y
L I M I T E D
2.
Summary of significant accounting policies (cont’d)
2.21
Revenue (cont’d)
(d)
Charter hire
Revenue from charter hire is recognised over time as the group satisfies its performance
obligation. Vessel charter income is recognised on a daily basis in accordance to the terms
and conditions of the charter agreement.
(e)
Interest income
Interest income is recognised using the effective interest method.
(f)
Dividend income
Dividend income is recognised when the Group’s right to receive payment is established.
2.22
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.
Current income taxes are recognised in the profit or loss except to the extent that the tax
relates to items recognised outside profit or loss, either in other comprehensive income or
directly in equity. Management 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
Deferred tax is provided using the liability method on temporary differences at the end of the
reporting period between the tax bases of assets and liabilities and their carrying amounts
for financial reporting purposes.
Deferred tax liabilities are recognised for all temporary differences, except:
–
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, affects neither the accounting profit nor taxable profit or loss; and