Annual Report 2015

Profit (loss) per share
The computation of profit (loss) per share is based on the weighted
average number of shares outstanding during the period. Diluted
profit (loss) per share is computed in a similar way to basic profit
(loss) per share except that the weighted average shares outstanding
are increased to include additional shares assuming the exercise of
share options, share appreciation rights and convertible debt options,
if dilutive.
evaluates positions taken in the tax returns with respect to situations
in which applicable tax regulations are subject to interpretation and
establishes provisions where appropriate.
AGI follows the liability method of accounting for deferred taxes.
Under this method, income tax liabilities and assets are recognized
for the estimated tax consequences attributable to the temporary
differences between the carrying value of the assets and liabilities on
the consolidated financial statements and their respective tax bases.
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Revenue recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to AGI and the revenue can be reliably
measured, regardless of when the payment is being made. Revenue
is measured at the fair value of the consideration received or
receivable, taking into account contractually defined terms of
payment and excluding taxes or duty. AGI assesses its revenue
arrangements against specific criteria in order to determine if it
is acting as principal or agent. With the exception of third-party
services, AGI has concluded that it is acting as a principal in all of
its revenue arrangements. The following specific recognition criteria
must also be met before revenue is recognized:
Sale of goods
Revenue from the sale of goods is in general recognized when
significant risks and rewards of ownership are transferred to the
customer. AGI generally recognizes revenue when products are
shipped, free on board shipping point; the customer takes ownership
and assumes risk of loss; collection of the related receivable is
probable; persuasive evidence of an arrangement exists; and, the
sales price is fixed or determinable. Customer deposits are recorded
as a current liability when cash is received from the customer and
recognized as revenue at the time product is shipped, as noted above.
AGI applies layaway sales or bill and hold sales accounting in specific
situations provided all appropriate conditions are met as of the
reporting date.
Third-party services
AGI from time to time enters into arrangements with third-party
providers to provide services for AGI’s customers. Where AGI acts
as agent, the revenue and costs associated with these services are
recorded on a net basis and disclosed under other operating income.
Income taxes
AGI and its subsidiaries are generally taxable under the statutes of
their country of incorporation.
Current income tax assets and liabilities for the current and prior
period are measured at the amount expected to be recovered from
or paid to the taxation authorities. The tax rates and tax laws used
to compute the amount are those that are enacted or substantively
enacted at the reporting date in the countries where AGI operates
and generates taxable income. Current income tax relating to items
recognized directly in equity is recognized in equity and not in the
consolidated statements of income (loss). Management periodically
Deferred tax liabilities are recognized for all taxable temporary
differences, except:
• Where the deferred tax liability arises from the initial recognition
of goodwill or 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 the taxable profit or loss.
• In respect of taxable temporary differences associated with
investments in subsidiaries, 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.
Deferred tax assets are recognized for all deductible temporary
differences, carryforward of unused tax losses, to the extent that it
is probable that taxable profit will be available against which the
deductible temporary differences and the carryforward of unused tax
losses can be utilized.
The carrying amount of deferred tax assets is reviewed at each
reporting date and reduced to the extent that it is no longer probable
that sufficient taxable profit will be available to allow all or part
of the deferred tax asset to be utilized. Unrecognized deferred tax
assets are reassessed at each reporting date and are recognized to
the extent that it has become probable that future taxable profits will
allow the deferred tax asset to be recovered. Deferred tax assets and
liabilities are measured at the tax rates that are expected to apply in
the year when the asset is realized or the liability is settled, based
on tax rates [and tax laws] that have been enacted or substantively
enacted at the reporting date.
Deferred tax items are recognized in correlation to the underlying
transaction either in the consolidated statements of income, other
comprehensive income or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally
enforceable right exists to offset current tax assets against current
income tax liabilities and the deferred taxes relate to the same
taxable entity and the same taxation authority.
Tax benefits acquired as part of a business combination, but not
satisfying the criteria for separate recognition at that date, would be
recognized subsequently if information about facts and circumstances
changed. The adjustment would either be treated as a reduction to
goodwill if it occurred during the measurement period or in profit or
loss, when it occurs subsequent to the measurement period.
Indefinite life intangible assets are measured on an “on sale” basis
for tax purposes.
CONSOLIDATED FINANCIAL STATEMENTS 2015 ANNUAL REPORT