IREIT Global Group Pte. Ltd - Annual Report 2015 - page 80

Ʌ
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(m) Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
7KH WD[ FXUUHQWO\ SD\DEOH LV EDVHG RQ WD[DEOH SURȴW IRU WKH \HDU 7D[DEOH SURȴW GL΍HUV IURP ȊSURȴW EHIRUH
WD[DWLRQȋ DV UHSRUWHG LQ WKH VWDWHPHQW RI SURȴW RU ORVV DQG RWKHU FRPSUHKHQVLYH LQFRPH EHFDXVH LW H[FOXGHV
items of income and expense that are taxable or deductible in other years and it further excludes items that
are not taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been
enacted or substantively enacted by the end of the reporting period.
'HIHUUHG WD[ LV UHFRJQLVHG RQ WKH WHPSRUDU\ GL΍HUHQFHV EHWZHHQ WKH FDUU\LQJ DPRXQWV RI DVVHWV DQG OLDELOLWLHV
LQ WKH VWDWHPHQWV RI ȴQDQFLDO SRVLWLRQ DQG WKH FRUUHVSRQGLQJ WD[ EDVHV XVHG LQ WKH FRPSXWDWLRQ RI WD[DEOH
SURȴW 'HIHUUHG WD[ OLDELOLWLHV DUH JHQHUDOO\ UHFRJQLVHG IRU DOO WD[DEOH WHPSRUDU\ GL΍HUHQFHV 'HIHUUHG WD[
DVVHWV DUH JHQHUDOO\ UHFRJQLVHG IRU DOO WHPSRUDU\ GL΍HUHQFH WR WKH H[WHQW WKDW LW LV SUREDEOH WKDW WD[DEOH SURȴWV
ZLOO EH DYDLODEOH DJDLQVW ZKLFK GHGXFWLEOH WHPSRUDU\ GL΍HUHQFHV FDQ EH XWLOLVHG 6XFK GHIHUUHG DVVHWV DQG
OLDELOLWLHV DUH QRW UHFRJQLVHG LI WKH WHPSRUDU\ GL΍HUHQFH DULVHV IURP JRRGZLOO RU IURP WKH LQLWLDO UHFRJQLWLRQ
RWKHU WKDQ LQ D EXVLQHVV FRPELQDWLRQ RI RWKHU DVVHWV DQG OLDELOLWLHV LQ D WUDQVDFWLRQ WKDW D΍HFWV QHLWKHU WKH
WD[DEOH SURȴW QRU WKH DFFRXQWLQJ SURȴW
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to
WKH H[WHQW WKDW LW LV QR ORQJHU SUREDEOH WKDW VXɝFLHQW WD[DEOH SURȴWV ZLOO EH DYDLODEOH WR DOORZ DOO RU SDUW RI WKH
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.
7KH PHDVXUHPHQW RI GHIHUUHG WD[ OLDELOLWLHV DQG DVVHWV UHȵHFWV WKH WD[ FRQVHTXHQFHV WKDW ZRXOG IROORZ IURP
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
WKH HFRQRPLF EHQHȴWV HPERGLHG LQ WKH LQYHVWPHQW SURSHUW\ RYHU WLPH UDWKHU WKDQ WKURXJK VDOH
&XUUHQW DQG GHIHUUHG WD[ DUH UHFRJQLVHG LQ SURȴW RU ORVV H[FHSW ZKHQ LW UHODWHV WR LWHPV WKDW DUH UHFRJQLVHG
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
WD[ DULVHV IURP WKH LQLWLDO DFFRXQWLQJ IRU D EXVLQHVV FRPELQDWLRQ WKH WD[ H΍HFW LV LQFOXGHG LQ WKH DFFRXQWLQJ
for the business combination.
'HIHUUHG WD[ DVVHWV DQG OLDELOLWLHV DUH R΍VHW ZKHQ WKHUH LV D OHJDOO\ HQIRUFHDEOH ULJKW WR VHW R΍ FXUUHQW WD[
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.
Notes to the
Financial Statements
For the year ended 31 December 2015
78