Huawei 2013 Annual Report Download - page 74

73
Notes to the Consolidated Financial Statements Summary
amount of the assets and liabilities, using
tax rates enacted or substantively enacted
at the end of the reporting period. Deferred
tax assets and liabilities are not discounted.
The carrying amount of a deferred tax asset
is reviewed at the end of each reporting
period and is reduced to the extent that
it is no longer probable that sufficient
taxable profits will be available to allow the
related tax benefit to be utilised. Any such
reduction is reversed to the extent that it
becomes probable that sufficient taxable
profits will be available.
Current tax balances and deferred tax
balances, and movements therein, are
presented separately from each other and
are not offset. Current tax assets are offset
against current tax liabilities, and deferred
tax assets against deferred tax liabilities, if
the Group has the legally enforceable right
to set off current tax assets against current
tax liabilities and the following additional
conditions are met:
■ in the case of current tax assets and
liabilities, the Group intends either
to settle on a net basis, or to realise
the asset and settle the liability
simultaneously; or
■ in the case of deferred tax assets and
liabilities, if they relate to income taxes
levied by the same taxation authority on
either:
■ the same taxable entity; or
■ different taxable entities, which, in
each future period in which significant
amounts of deferred tax liabilities or
assets are expected to be settled or
recovered, intend to realise the current
tax assets and settle the current tax
liabilities on a net basis or realise and
settle simultaneously.
(s) Revenue recognition
Revenue is measured at the fair value of
the consideration received or receivable.
Provided it is probable that the economic
benefits will flow to the Group and the
revenue and costs, if applicable, can be
measured reliably, revenue is recognised in
profit or loss as follows:
i) Sale of goods and provision of services
Revenue from sale of goods is recognised
when the significant risks and rewards of
ownership of goods have been transferred
to the buyer. Revenue from provision of
services is recognised at the time when
the services are provided. No revenue
is recognised if there are significant
uncertainties regarding the recovery of the
consideration due, associated costs or the
possible return of goods. Revenue excludes
value added tax or other sales taxes and is
after deduction of any trade discounts.
ii) Contract revenue
When the outcome of a construction
contract can be estimated reliably, revenue
from a fixed price contract is recognised
using the percentage of completion
method, measured by reference to the
percentage of contract costs incurred to
date to estimated total contract costs for
the contract.
When the outcome of a construction
contract cannot be estimated reliably,
revenue is recognised only to the extent of
contract costs incurred that it is probable
will be recoverable.