Singapore Airlines 2015 Annual Report Download - page 121

2 Summary of Significant Accounting Policies (continued)
(aa) Taxation (continued)
(ii) Deferred tax (continued)
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items
are recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity
and deferred tax arising from a business combination is adjusted against goodwill on acquisition.
Deferred tax assets and deferred tax liabilities are oset, if a legally enforceable right exists to set o current income
tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the
same tax authority.
(iii) Indirect taxes
Revenues, expenses and assets are recognised net of the amount of indirect tax except:
• Wheretheindirecttaxincurredonapurchaseofassetsorservicesisnotrecoverablefromthetaxauthority,in
which case the indirect tax is recognised as part of the cost of acquisition of the asset or as part of the expense
item as applicable; and
• Receivablesandpayablesthatarestatedwiththeamountofindirecttaxincluded.
The net amount of indirect tax recoverable from, or payable to, the tax authority is included as part of receivables
or payables in the statement of financial position.
(ab) Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue
can be reliably measured. Revenue is measured at the fair value of consideration received or receivable.
Revenue is principally earned from the carriage of passengers, cargo and mail, engineering services, training of pilots, air
charters and tour wholesaling and related activities. Revenue for the Group excludes dividends from subsidiary companies
and intra-group transactions.
Passenger and cargo sales are recognised as operating revenue when the transportation is provided. The value of unused
tickets and air waybills is included in current liabilities as sales in advance of carriage. The value of tickets and air waybills
is recognised as revenue if unused aer two years and one year respectively.
Revenue from repair and maintenance of aircra, engine and component overhaul is recognised based on the percentage
of completion of the projects. The percentage of completion of the projects is determined based on the number of
man-hours incurred to date against the estimated man-hours needed to complete the projects.
Rental income from lease of aircra is recognised on a straight-line basis over the lease term.
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