Annual Report 2011 - Food Junction
Annual Report 2011 - Food Junction
Annual Report 2011 - Food Junction
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Notes to the Financial Statements (cont’d)<br />
31 December <strong>2011</strong><br />
2. Summary of significant accounting policies (cont’d)<br />
2.21 Taxes (cont’d)<br />
(c) Sales tax<br />
Revenues, expenses and assets are recognised net of the amount of sales tax except:<br />
– Where the sales tax incurred on a purchase of assets or services is not recoverable from<br />
the taxation authority, in which case the sales tax is recognised as part of the cost of<br />
acquisition of the asset or as part of the expense item as applicable; and<br />
– Receivables and payables that are stated with the amount of sales tax included.<br />
The net amount of sales tax recoverable from, or payable to, the taxation authority is included<br />
as part of receivables or payables in the balance sheet.<br />
2.22 Segment reporting<br />
For management purposes, the Group is organised into operating segments based on their products<br />
and services which are independently managed by the respective segment managers responsible<br />
for the performance of the respective segments under their charge. The segment managers report<br />
directly to the management of the Company who regularly review the segment results in order to<br />
allocate resources to the segments and to assess the segment performance. Additional disclosures<br />
on each of these segments are shown in Note 26, including the factors used to identify the reportable<br />
segments and the measurement basis of segment information.<br />
2.23 Share capital and share issuance expenses<br />
Proceeds from issuance of ordinary shares are recognised as share capital in equity. Incremental costs<br />
directly attributable to the issuance of ordinary shares are deducted against share capital.<br />
2.24 Treasury shares<br />
The Group’s own equity instruments, which are reacquired (treasury shares) are recognised at cost<br />
and deducted from equity. No gain or loss is recognised in the income statement on the purchase,<br />
sale, issue or cancellation of the Group’s own equity instruments. Any difference between the carrying<br />
amount of treasury shares and the consideration received, if reissued, is recognised directly in equity.<br />
Voting rights related to treasury shares are nullified for the Group and no dividends are allocated to<br />
them respectively.<br />
2.25 Contingencies<br />
A contingent liability is:<br />
(a) a possible obligation that arises from past events and whose existence will be confirmed only by<br />
the occurrence or non-occurrence of one or more uncertain future events not wholly within the<br />
control of the Group; or<br />
(b) a present obligation that arises from past events but is not recognised because:<br />
(i) It is not probable that an outflow of resources embodying economic benefits will be<br />
required to settle the obligation; or<br />
(ii) The amount of the obligation cannot be measured with sufficient reliability.<br />
A contingent asset is a possible asset that arises from past events and whose existence will be<br />
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly<br />
within the control of the Group.<br />
Contingent liabilities and assets are not recognised on the balance sheet of the Group, except for<br />
contingent liabilities assumed in a business combination that are present obligations and which the fair<br />
values can be reliably determined.<br />
<strong>Annual</strong> <strong>Report</strong> 67