Epson 2015 Annual Report Download - page 65

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64
The deferred tax assets or liabilities are not recognised for the following temporary differences:
• The initial recognition of goodwill
• The initial recognition of assets or liabilities in transactions that are not business combinations and affect neither
accounting profit nor taxable profit or tax loss at the time of transaction
• Deductible temporary differences arising from investments in subsidiaries and associates, and interests in joint
ventures to the extent that it is probable that the temporary differences will not reverse in the foreseeable future and
it is not probable that future taxable profits will be available against which they can be utilized
• Taxable temporary differences arising from investments in subsidiaries and associates, and interests in joint
ventures to the extent that the timing of the reversal of the temporary difference is controlled and it is probable that
the temporary differences will not reverse in the foreseeable future.
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 tax rates that have been enacted or substantively enacted by the
fiscal year end date.
(19) Treasury Shares
Treasury shares are recognised at cost and deducted from equity. No profit or loss is recognised on the purchase,
sale or cancellation of the treasury shares. Any difference between the carrying amount and the consideration paid
is recognised in capital surplus.
(20) Earnings per Share
Basic earnings per share are calculated by dividing profit or loss attributable to ordinary shareholders of the parent
company by the weighted-average number of ordinary shares outstanding during the year, adjusted by the number
of treasury shares.
(21) Dividends
Year-end dividend distributions to the shareholders of the Company are recognised as liabilities in the period in
which the distribution is approved by the Annual Shareholders’ Meeting. Interim dividend distributions are
recognised as liabilities in the period in which the distribution is approved by Epson’ s Board of Directors.
(22) Contingencies
(A) Contingent Liabilities
Epson discloses contingent liabilities in the notes to consolidated financial statements if it has possible obligations
at the fiscal year end date but their existence cannot be confirmed at that date, or if it has present obligations as a
result of past events but which those obligations do not meet the recognition criteria of a provision.
(B) Contingent Assets
Epson discloses contingent assets in the notes to consolidated financial statements if an inflow of future economic
benefits to Epson is probable, but not virtually certain at the fiscal year end date.
(23) Reclassification
Certain reclassifications have been made to the prior year amounts to conform to the current year presentation.