IREIT Global
annual report 2014
For the reporting period from 1 November 2013 (date of constitution) to 31 December 2014
Notes to the
Financial Statements
2.
SIGNIFICANT ACCOUNTING POLICIES
(Continued)
(l) Taxation
(Continued)
Deferred tax is recognised on the temporary differences between the carrying amounts of
assets and liabilities in the statements of financial position and the corresponding tax bases
used in the computation of taxable profit. Deferred tax liabilities are generally recognised
for all taxable temporary differences. Deferred tax assets are generally recognised for all
temporary difference to the extent that it is probable that taxable profits will be available
against which deductible temporary differences can be utilised. Such deferred assets and
liabilities are not recognised if the temporary difference arises from goodwill or from the
initial recognition (other than in a business combination) of other assets and liabilities in a
transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period
and reduced to the extent that it is no longer probable that sufficient taxable profits will be
available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the
liability is settled or the asset is realised based on the tax rates (and tax laws) that have
been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that
would follow from the manner in which the Group expects, at the end of the reporting period,
to recover or settle the carrying amount of its assets and liabilities.
For the purposes of measuring deferred tax liabilities or deferred tax assets for investment
properties that are measured using the fair value model, the carrying amounts of such
properties are presumed to be recovered entirely through sale, unless the presumption is
rebutted. The presumption is rebutted when the investment property is depreciable and is
held within a business model whose objective is to consume substantially all of the economic
benefits embodied in the investment property over time, rather than through sale.
Current and deferred tax are recognised in profit or loss, except when it relates to items
that are recognised in other comprehensive income or directly in equity, in which case, the
current and deferred tax are also recognised in other comprehensive income or directly in
equity respectively. Where current tax or deferred tax arises from the initial accounting
for a business combination, the tax effect is included in the accounting for the business
combination.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set
off current tax assets against current tax liabilities and when they relate to income taxes
levied by the same taxation authority and the Group intends to settle its current tax assets
and liabilities on a net basis.
