2. Summary of significant accounting policies (cont’d)
2.23 Revenue (cont’d)
(d) Sale of goods
Revenue from sale of goods is recognised upon the transfer of significant risk and
rewards of ownership of the goods to the customer, usually on delivery of goods.
Revenue is not recognised to the extent where there are significant uncertainties
regarding recovery of the consideration due, associated costs or the possible return
of goods.
(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.
2.24 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 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
NOTES TO THE FINANCIAL
STATEMENTS
For the financial year ended 30 June 2015
ASL Marine Holdings Ltd. /Annual Report 2015
96
