Basic HTML Version
Glorious Property
102
Annual Report 2011
Notes to the Consolidated Financial Statements
(Continued)
31 December 2011
2 Summary of Significant Accounting Policies
(Continued)
(n) SHARE CAPITAL
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options
are shown in equity as a deduction, net of tax, from the proceeds.
(o) TRADE AND OTHER PAYABLES
Trade payable are obligation to pay the goods or services that have been acquired in the ordinary course of business
from suppliers. Trade payable are classified as current liabilities if payment is due within one year or less (or in the
normal operating cycle of the business if longer), If not, they are presented as non-current liabilities.
Payables are recognised initially at fair value and subsequently measured at amortised costs using the effective
method.
(p) OFFSETTING FINANCIAL INSTRUMENTS
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally
enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset
and settle the liability simultaneously.
(q) BORROWINGS
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently
stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value
is recognised in the consolidated statement of comprehensive income over the period of the borrowings using the
effective interest method.
Borrowings are classified as current liabilities unless there is an unconditional right to defer settlement of the
liability for at least 12 months after the end of the reporting period.
(r) BORROWING COSTS
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the
cost of that asset. All other borrowing costs are charged to the consolidated statement of comprehensive income in
the period in which they are incurred.
(s) CURRENT AND DEFERRED INCOME TAX
The tax expenses for the period comprise current and deferred tax. Tax is recognised in the consolidated statement
of comprehensive income.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end
of reporting period in the countries where the Company and its subsidiaries and associates operate and generate
taxable income. Management periodically evaluates position taken in tax return with respect to situations in which
applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of
amounts expected to be paid to the tax authorities.