| ANNUAL REPORT 2015
116
NOTES TO THE FINANCIAL STATEMENTS
30 June 2015 (cont’d)
4. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
4.12 Impairment of financial assets (cont’d)
(b) Available-for-sale financial assets
The Group collectively considers factors such as significant or prolonged decline in fair value below cost, significant
financial difficulties of the issuer or obligor, and the disappearance of an active tradingmarket as objective evidence
that available-for-sale financial assets are impaired.
If any such objective evidence exists, an amount comprising the difference between the financial asset’s cost (net
of any principal payment and amortisation) and current fair value, less any impairment loss previously recognised
in profit or loss, is transferred from equity to profit or loss.
Impairment losses in respect of unquoted equity instrument that is carried at cost is recognised in profit or loss and
is measured as the difference between the financial asset’s carrying amount and the present value of estimated
future cash flows discounted at the current market rate of return for a similar financial asset.
Impairment losses on available-for-sale equity investments are not reversed in profit or loss in the subsequent
periods. Instead, any increase in the fair value subsequent to the impairment loss is recognised in other
comprehensive income.
Impairment losses on available-for-sale debt investments are subsequently reversed in profit or loss if the increase
in the fair value of the investment can be objectively related to an event occurring after the recognition of the
impairment loss in profit or loss.
4.13 Borrowing costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualified asset is
capitalised as part of the cost of the asset until when substantially all the activities necessary to prepare the asset for its
intended use or sale are complete, after which such expense is charged to profit or loss. A qualifying asset is an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale. Capitalisation of borrowing cost is
suspended during extended periods in which active development is interrupted.
The amount of borrowing costs eligible for capitalisation is the actual borrowing costs incurred on the borrowing during
the period less any investment income on the temporary investment of the borrowing.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
4.14 Income taxes
Income taxes include all domestic and foreign taxes on taxable profit. Income taxes also include other taxes, such as
withholding taxes, which are payable by foreign subsidiaries and associates on distributions to the Group and Company,
and real property gains taxes payable on disposal of properties.
Taxes in the statement of profit or loss and other comprehensive income comprise current tax and deferred tax.
(a) Current tax
Current tax expenses are determined according to the tax laws of each jurisdiction in which the Group operates
and include all taxes based upon the taxable profits (including withholding taxes payable by foreign subsidiaries
on distribution of retained earnings to companies in the Group), and real property gains taxes payable on disposal
of properties.
