ASCENDAS india trust ANNUAL REPORT 2014/15
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
For the financial year ended 31 March 2015
2.
Significant accounting policies (continued)
2.17 Taxes (Continued)
(b)
Deferred tax (continued)
Deferred tax items are recognised in correlation to the underlying transaction or event. The deferred tax effect will be:
(i)
Recognised in the profit or loss, if the underlying transaction or event is recognised in profit or loss,
(ii)
Recognised directly in unitholders’ funds, if the underlying transaction or event is recognised in unitholders’
funds, and
(iii)
Recognised as an adjustment to goodwill (or negative goodwill) if the underlying transaction or event arises
from a business combination.
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 taxes relate to the same taxable entity and the same
tax authority.
Tax benefits acquired as part of a business combination, but not satisfying the criteria for separate recognition at that
date, would be recognised subsequently if new information about facts and circumstances changed. The adjustment
would either be treated as a reduction to goodwill (as long as it does not exceed goodwill) if it is incurred during the
measurement period or in profit or loss.
(c)
Sales tax
Revenues, expenses and assets are recognised net of the amount of sales tax except:
(i)
Where the sales tax incurred on a purchase of assets or services is not recoverable from the tax authority, in
which case the sales tax is recognised as part of the cost of acquisition of the asset or as part of the expense
item as applicable; and
(ii)
Receivables and payables that are stated with the amount of sales tax included.
The net amount of sales tax recoverable from, or payable to, the tax authority is included as part of receivables or
payables in the balance sheet.
2.18 Provisions
Provisions for other liabilities and charges are recognised when the Group has a present legal or constructive obligation as a
result of past events; it is more likely than not that an outflow of resources will be required to settle the obligation and the
amount has been reliably estimated. Provisions are not recognised for future operating losses.
Provisions are measured at the present value of the expenditure expected to be required to settle the obligation using a
pre-tax discount rate that reflects the current market assessment of the time value of money and the risks specific to the
obligation. The increase in the provision due to the passage of time is recognised in profit or loss as finance cost.
Changes in the estimated timing or amount of the expenditure or discount rate are recognised in profit or loss when the
changes arise.
