Konica Minolta 2015 Annual Report Download - page 96

the vesting period after considering the number of share options that are expected to be eventually vested. The corresponding
amount is recognized as an increase in equity.
(16) Provisions
The Group has present legal or constructive obligations resulting from past events and recognizes provisions when it is probable that
the obligations are required to be settled and the amount of the obligations can be estimated reliably.
Where the effect of the time value of money is material to the provisions, the amount of provisions is measured at the present
value of the estimated future cash flows discounted to present value using the pre-tax discount rate reflecting current market
assessments of the time value of money and the risks specific to the liability. Reversals of discounts to reflect the passage of time
are recognized as finance costs.
(17) Revenue
Revenue from the sale of goods in the course of ordinary business activities is measured at the fair value of the consideration
received or receivable, less returns, discounts and rebates. The Group recognizes revenue from the sale of goods when the Group
has transferred to the buyer the significant risks and rewards of ownership of the goods, the Group does not retain continuing
managerial involvement over the goods sold, the amount of revenue can be estimated reliably, the recoverability of consideration is high
and related costs of sales can be estimated reasonably.
The Group recognizes revenue from the provision of services, based on stage of completion of transactions at the fiscal
year-end when the amount of revenue can be reliably measured, it is probable that the economic benefits associated with the
transaction will flow to the Group; the stage of completion of transactions can be reliably measured at the fiscal year-end, and the
expenses to be incurred in association with the transactions and the expenses required to conclude the transactions can be reliably
measured.
Standards for recognizing revenue from the sale of goods and the provision of services are typically applied on a per-
transaction basis. However, if individual transactions contain multiple recognizable elements, revenue may be recognized for each
elemental unit in order to reflect the economic reality of the transactions.
(18) Government grants
The Group initially recognizes government grant as deferred income at fair value when there is reasonable assurance that the grant
will be received and that the Group will comply with the conditions attached to it.
Grants associated with assets are recognized in profit or loss on a systematic basis over the useful lives of the assets. For
grants associated with revenue, revenue is recognized on a systematic basis in the periods when related expenses are recognized.
(19) Income taxes
Current and deferred taxes are stated as income tax expense in the consolidated statement of profit or loss except when they relate
to business combinations or on items recognized in OCI or directly in equity.
1) Current taxes
Current income taxes are measured at the amount that is expected to be paid to or refunded from the taxation authorities. For the
calculation of the tax amount, the Group uses the tax rates and tax laws that have been enacted or substantively enacted by the
end of the fiscal year.
2) Deferred taxes
Deferred income taxes are calculated based on the temporary differences between the amounts used for tax purpose and the
carrying amount for assets and liabilities at the fiscal year end. Deferred tax assets are recognized for deductible temporary
differences, unused tax credits and unused tax losses to the extent that it is probable that future taxable profit will be available
against which they can be utilized. Deferred tax liabilities are recognized for taxable temporary differences.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the fiscal year when the asset is
realized or the liability is settled, based on the tax laws that have been enacted or substantively enacted by the fiscal year end.
Deferred tax assets and deferred tax liabilities are not recognized for the following temporary differences:
• taxable temporary differences on initially recognized goodwill
• temporary differences arising from the initial recognition of assets or liabilities in transactions that are not business
combinations and at the time of transaction affect neither accounting profit nor taxable profit or tax loss
• taxable temporary differences on investments in subsidiaries and associates to the extent that the timing of the reversal of the
temporary difference is controlled and that it is probable the temporary difference will not reverse in the foreseeable future
• deductible temporary differences on investments in subsidiaries and associates to the extent that it is not probable the
95
KONICA MINOLTA, INC. Annual Report 2015
Foundation for GrowthBusiness StrategiesGrowth StrategyCompany Overview and Characteristics Financial Report