Singapore Airlines 2009 Annual Report Download - page 112

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NOTES TO THE FINANCIAL STATEMENTS
31 March 2009
2 Accounting Policies (continued)
(z) Taxation (continued)
(ii) Deferred tax
Deferred tax is provided, using the liability method, on all temporary differences at the balance
sheet date between the tax bases of assets and liabilities and their carrying amounts for fi nancial
reporting purposes.
Deferred tax assets and liabilities are recognised for all temporary differences, except:
• In respect of temporary differences associated with investments in subsidiary, associated and
joint venture companies, where the timing of the reversal of the temporary differences can
be controlled by the Group and it is probable that the temporary differences will not reverse
in the foreseeable future; and
• In respect of deductible temporary differences and carry forward of unused tax credits and
unused tax losses, if it is not probable that taxable profi t will be available against which the
deductible temporary differences and carry forward of unused tax credits and unused tax
losses can be utilised.
The carrying amount of deferred tax asset is reviewed at each balance sheet date and reduced
to the extent that it is no longer probable that taxable profi t will be available to allow all or part
of the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each
balance sheet date and are recognised to the extent that it has become probable that future
taxable profi t will allow the deferred tax asset to be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the
year when the asset is realised or the liability is settled, based on tax rates and tax laws that have
been enacted or substantively enacted at the balance sheet date.
Deferred taxes are recognised in the profi t and loss account except that deferred tax relating to
items recognised directly in equity is recognised directly in equity and deferred tax arising from a
business combination is adjusted against goodwill on consolidation.
(aa) Revenue
Revenue is recognised to the extent that it is probable that the economic benefi ts will fl ow to the Group
and the revenue can be reliably measured. Revenue is measured at the fair value of consideration
received or receivable.