2. Significant accounting policies (CONT’D.)
2.5 Summary of significant accounting policies (cont’d.)
(l) Share capital and share issuance expenses
An equity instrument is any contract that evidences a residual interest in the assets of the Group and
the Company after deducting all of its liabilities. Ordinary shares are equity instruments.
Ordinary shares are recorded at the proceeds received, net of directly attributable incremental
transaction costs. Ordinary shares are classified as equity. Dividends on ordinary shares are recognised
in equity in the period in which they are declared.
(m) Borrowing costs
Borrowing costs consist of interest and other costs that the Group and the Company incurred in
connection with the borrowing of funds. Borrowing costs are capitalised as part of the cost of a
qualifying asset if they are directly attributable to the acquisition, construction or production of that
asset.
Capitalisation of borrowing costs commences when the activities to prepare the asset for its intended
use or sale are in progress and the expenditure and borrowing costs are incurred. Borrowing costs are
capitalised until the assets are substantially completed for their intended use or sale.
All other borrowing costs are recognised in profit or loss in the period they are incurred.
(n) Income tax
Income tax on the profit or loss for the year comprises current and deferred tax, and is recognised in
the profit or loss. Current tax is the expected amount of income taxes payable in respect of the
taxable profit for the year and is measured using the tax rates that have been enacted or substantively
enacted at the reporting date. Current taxes are recognised in profit or loss except to the extent that
the tax relates to items recognised outside profit or loss, either in other comprehensive income or
directly in equity.
Deferred tax is provided using the liability method on temporary differences at the reporting date
between the tax bases of assets and liabilities and their carrying amounts for financial reporting
purposes.
In principle, deferred tax liabilities are recognised for all taxable temporary differences and deferred
tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits
and unused tax losses, to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences, and the carry forward of unused tax credits and unused
tax losses can be utilised.
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 utilised. Unrecognised deferred tax assets are reassessed at each reporting
date and are recognised to the extent that it has become probable that future taxable profit will allow
the deferred tax assets to be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year
when the asset is realised or the liability is settled, based on tax rates and tax laws that have been
enacted or substantively enacted at the reporting date.
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