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INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2015
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For the financial year ended 31 December 2015
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.25 Taxes (cont’d)
(b)
Deferred tax (cont’d)
The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 reporting
period and are recognised to the extent that it has become probable that future taxable profit will allow the
deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured 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.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current
income tax assets against current income tax liabilities and the deferred income taxes relate to the same taxable
entity and the same taxation authority.
(c)
Value-added tax (“VAT”)
Revenues, expenses and assets are recognised net of the amount of VAT except:
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Where the VAT incurred on a purchase of assets or services is not recoverable from the taxation authority,
in which case the VAT is recognised as part of the cost of acquisition of the asset or as part of the expense
item as applicable; and
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Receivables and payables that are stated with the amount of VAT included.
The net amount of VAT recoverable from, or payable to, the taxation authority is included as part of receivables
or payables in the consolidated balance sheet.
2.26 Segment reporting
For management purposes, the Group is organised into operating segments based on their products and services which
are independently managed by the respective segment managers responsible for the performance of the respective
segments under their charge. The segment managers report directly to the management who regularly review the
segment results in order to allocate resources to the segments and to assess the segment performance. Additional
disclosures on each of these segments are shown in Note 36, including the factors used to identify the reportable
segments and the measurement basis of segment information.
2.27 Share capital and share issuance expenses
Proceeds from issuance of ordinary shares are recognised as share capital in equity. Incremental costs directly
attributable to the issuance of ordinary shares are deducted against share capital.
2.28 Treasury shares
The Group’s own equity instruments, which are reacquired (treasury shares) are recognised at cost and deducted from
equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the Group’s own
equity instruments. Any difference between the carrying amount of treasury shares and the consideration received, if
reissued, is recognised directly in equity. Voting rights relating to treasury shares are nullified for the Group and no
dividends are allocated to them respectively.
