NOTES TO THE FINANCIAL STATEMENTS
4 SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.3 Impairment (Cont’d)
Loans and receivables
The Company considers evidence of impairment for loans and receivables at a specific asset level. All individually
significant loans and receivables are assessed for specific impairment.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between
its carrying amount and the present value of the estimated future cash flows, discounted at the asset’s original
effective interest rate. Losses are recognised in profit or loss and reflected in an allowance account against loans and
receivables. Interest on the impaired asset continues to be recognised. When a subsequent event (e.g. repayment
by a debtor) causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through
profit or loss.
4.4 Revenue recognition
Management fee
Management fees are derived from the management of a business trust and are determined based on profit before
interest, tax and management fee expense of the business trust being managed. These fees are recognised on an
accrual basis.
4.5 Tax
Tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in profit or loss except
to the extent that it relates to items recognised directly in equity or in other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted
or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities
for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for
temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination
and that affects neither accounting nor taxable profit or loss.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse,
based on the laws that have been enacted or substantively enacted by the reporting date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and
assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax
entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be
realised simultaneously.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the
extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax
assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related
tax benefit will be realised.
In determining the amount of current and deferred tax, the Company takes into account the impact of uncertain
tax positions and whether additional taxes and interest may be due. The Company believes that its accruals for tax
liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax
law and prior experience. This assessment relies on estimates and assumptions and may involve a series of judgments
about future events. New information may become available that causes the Company to change its judgment
regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact tax expense in the period
that such a determination is made.
12
ANNUAL REPORT 2014
