Page 153 - KPJ_2011

2. Summary of significant accounting policies (continued)
2.24 Income taxes (continued)
(b) Deferred tax (continued)
Deferred tax relating to items recognised outside promt or loss is recognised outside promt or loss. Deferred
tax items are recognised in correlation to the underlying transaction either in other comprehensive
income or directly in equity and deferred tax arising from a business combination is adjusted against
goodwill on acquisition.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity
and the same taxation authority.
2.25 Segment reporting
For management purposes, the Group is organised into operating segments based on their products and
services which are independently managed by the respective segment managers responsible for the
performance of the respective segments under their charge. The segment managers report directly to the
management of the Group who regularly review the segment results in order to allocate resources to the
segments and to assess the segment performance. Additional disclosures on each of these segments are
shown in Note 41, including the factors used to identify the reportable segments and the measurement basis
of segment information.
2.26 Ordinary share capital and share issuance expenses
An equity instrument is any contract that evidences a residual interest in the assets of the Group and of 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 classimed as equity. Dividends on ordinary shares are recognised in equity in the
period in which they are declared.
2.27 Treasury shares
When shares of the Company, that have not been cancelled, recognised as equity are reacquired, the amount
of consideration paid is recognised directly in equity. Reacquired shares are classimed as treasury shares and
presented as a deduction from total equity. No gain or loss is recognised in promt or loss on the purchase, sale,
issue or cancellation of treasury shares. When treasury shares are reissued by resale, the difference between
the sales consideration and the carrying amount is recognised in equity.
2.28 Contingencies
A contingent liability or asset is a possible obligation or asset that arises from past events and whose existence
will be conmrmed only by the occurrence or non-occurrence of uncertain future event(s) not wholly within the
control of the Group.
Contingent liabilities and assets are not recognised in the statements of mnancial position of the Group.
3. Significant accounting judgements and estimates
Thepreparation of theGroup’s mnancial statements requiresmanagement tomake judgements, estimates andassumptions
that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities
at the reporting date. However, uncertainty about these assumptions and estimates could result in outcomes that could
require a material adjustment to the carrying amount of the asset or liability affected in the future.
3.1 Critical judgements made in applying accounting policies
The following are the judgements made by management in the process of applying the Group’s accounting
policies that have the most signimcant effect on the amounts recognised in the mnancial statements.
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued)
ANNUAL REPORT 2011 148