Basic HTML Version
103
Glorious Property
Annual Report 2011
Notes to the Consolidated Financial Statements
(Continued)
31 December 2011
2 Summary of Significant Accounting Policies
(Continued)
(s) CURRENT AND DEFERRED INCOME TAX
(Continued)
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the
deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction
other than a business combination that at the time of the transaction affects neither accounting nor taxable profit
or loss. Deferred income tax is determined using the tax rates that have been enacted or substantively enacted by
the end of reporting period and are expected to apply when the related deferred income tax asset is realised or the
deferred income tax liability is settled.
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available
against which the temporary differences can be utilised.
Deferred income tax is provided on temporary differences arising on investments in subsidiaries, associates and
jointly controlled entities, except where the timing of the reversal of the temporary difference can be controlled by
the Group and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied
by the same taxation authority on either the taxable entity or different taxable entities where there is an intention to
settle the balances on a net basis.
(t) EMPLOYEE BENEFITS
(i) Employee leave entitlements
Employee entitlements to annual leave and long service leave are recognised when they accrue to employees. A
provision is made for the estimated liability for annual leave and long service leave as a result of services rendered
by employees up to the end of reporting period.
Employee entitlements to sick leave and maternity leave are not recognised until the time of leave.
(ii) Retirement benefits
In accordance with the rules and regulations in the PRC, the PRC-based employees of the Group participate
in various defined contribution retirement benefit plans organised by the relevant municipal and provincial
governments in the PRC under which the Group and the PRC based employees are required to make monthly
contributions to these plans calculated as a percentage of the employees’ salaries.
The municipal and provincial governments undertake to assume the retirement benefit obligations of all existing
and future retired PRC based employees payable under the plans described above. Other than the monthly
contributions, the Group has no further obligation for the payment of retirement and other post retirement
benefits of its employees. The assets of these plans are held separately from those of the Group in independently
administrated funds managed by the PRC governments.