continued - The Lion Group

3. SIGNIFICANT ACCOUNTING POLICIES (continued)
(o) Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised when the Group has a present obligation as a result of a past event and it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation,
and a reliable estimate of the amount can be made. Provisions are reviewed at each balance sheet date
and adjusted to reflect the current best estimate. Where the effect of the time value of money is material,
the amount of a provision is the present value of the expenditure expected to be required to settle the
obligation.
The Group does not recognise a contingent liability but discloses its existence in the financial statements. A
contingent liability is a possible obligation that arises from past events whose existence will be confirmed
by uncertain future events beyond the control of the Group or a present obligation that is not recognised
because it is not probable that an outflow of resources will be required to settle the obligation. A contingent
liability also arises in the extremely rare circumstances where there is a liability that cannot be recognised
because it cannot be measured reliably.
A contingent asset is a possible asset that arises from past events whose existence will be confirmed by
uncertain future events beyond the control of the Group. The Group does not recognise contingent asset
but discloses its existence when inflows of economic benefits are probable, but not virtually certain.
(p) Segment Reporting
Segment reporting is presented for enhancing assessment of the Group’s risks and returns. A business
segment is a group of assets and operations engaged in providing products or services that are subject to
risk and returns that are different from those of other business segments. A geographical segment is engaged
in providing products or services within a particular economic environment, that are subject to risks and
returns which are different from those components.
Segment revenue, expense, assets and liabilities are those amounts resulting from the operating activities
of a segment that are directly attributable to the segment and the relevant portion that can be allocated on
a reasonable basis to the segment. Segment revenue, expense, assets and liabilities are determined before
intra-group balances and intra-group transactions are eliminated as part of the consolidation process, except
to the extent that such intra-group balances and transactions are between group enterprises within a single
segment. Inter-segment pricing is based on similar terms as those available to other external parties.
(q) Fair Value Estimation for Disclosure Purposes
In assessing the fair value of financial instruments, the Group and the Company use a variety of methods
and make assumptions that are based on market conditions existing at each balance sheet date.
The fair value of publicly traded securities is based on quoted market prices at the balance sheet date.
Where there is no active market, fair value is established using valuation technique. Valuation techniques
include using recent arm’s length market transactions between knowledgeable, willing parties, if available,
reference to the current fair value of another instrument that is substantially the same, discounted cash flow
analysis and option pricing models.
The face values for the financial assets and financial liabilities with maturity of less than one (1) year are
assumed to approximate their fair values.
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