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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
INCOME TAX (Cont’d)
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and
associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary
difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets
arising from deductible temporary differences associated with such investments and interests are only recognised to the
extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary
differences and they are expected to reverse in the foreseeable future.
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 profits will be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the
asset realised based on the tax rates (and tax laws) that have been enacted or substantively enacted by the end of
the reporting period.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets
against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the
Group intends to settle its current tax assets and liabilities on a net basis.
Current and deferred tax are recognised as an expense or income in profit or loss, except when they relate to items
credited or debited outside profit or loss (either in other comprehensive income or directly to equity), in which case the tax
is also recognised directly outside profit or loss (either in other comprehensive income or directly in equity, respectively)
or where they arise from the initial accounting for a business combination. In the case of a business combination, the tax
effect is taken into account in calculating goodwill or determining the excess of the acquirer’s interest in the net fair value
of the acquiree’s identifiable assets, liabilities and contingent liabilities over cost.
FOREIGN CURRENCY TRANSACTIONS AND TRANSLATION
- The individual financial statements of each Group entity
are measured and presented in the currency of the primary economic environment in which the entity operates
(its functional currency). The consolidated financial statements of the Group and the financial statements of the
Co-operative are presented in Singapore dollars, which is the functional currency of the Co-operative, and the
presentation currency for the consolidated financial statements.
NOTES TO FINANCIAL STATEMENTS
March 31, 2013
