Notes to the Consolidated Financial Statements - Uni-Asia Finance ...

Realising A Sustainable Future
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Notes to the Consolidated Financial Statements
Year ended 31 December 2009
2.4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(l)
Financial liabilities at amortized cost (including interest-bearing loans and borrowings)
Financial liabilities including accounts and other payables, and interest-bearing loans and borrowings are initially stated at
fair value less directly attributable transaction costs and are subsequently measured at amortized cost, using the effective
interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. The related
interest expense is recognized within “Finance costs” in the income statement.
Gains and losses are recognized in the income statement when the liabilities are derecognized as well as through the
amortization process.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability
for at least 12 months after the balance sheet date.
Derecognition of financial liabilities
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms, or the
terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of
the original liability and a recognition of a new liability, and the difference between the respective carrying amounts is
recognized in the income statement.
(m) Cash and bank balances
For the purpose of the consolidated cash flow statement, cash flow from operating activities includes fee income and/ or
other income derived from the Group’s finance arrangement and investment management activities which are the principal
activities of the Group.
Cash and cash equivalents include cash in hand, bank balances and short term bank deposits with an original maturity of
less than three months.
(n)
Income tax
Income tax comprises current and deferred tax. Income tax relating to items recognized outside income statement is
recognized outside income statement, either in other comprehensive income or directly in equity.
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered
from or paid to the taxation authorities, based on tax rates (and tax laws) that have been enacted or substantively enacted
by the end of the reporting period, taking into consideration interpretations and practices prevailing in the countries in
which the group operates.
Deferred tax is provided, using the liability method, on all temporary differences at the end of the reporting period between
the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred tax liabilities are recognized for all taxable temporary differences, except:
•
•
where the deferred tax liability arises from the initial recognition of an asset or liability in a transaction that is not a
business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or
loss; and
in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint
ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that the
temporary differences will not reverse in the foreseeable future.