Singapore Airlines 2015 Annual Report Download - page 127

3 Significant Accounting Estimates (continued)
(f) Income taxes
The Group is subjected to income taxes in numerous jurisdictions. Significant judgment is involved in determining the
provision for income taxes. There are certain transactions and computations for which the ultimate tax determination is
uncertain during the ordinary course of business. The Group recognises liabilities for expected tax issues based on estimates
of whether additional taxes will be due. Where the final tax outcome of these matters is dierent from the amounts that
were initially recognised, such dierences will impact the income tax and deferred tax provisions in the period in which
such determination is made. The carrying amounts of the Group’s current tax payable and deferred taxation at 31 March
2015 was $161.9 million (2014: $201.1 million) and $1,599.6 million (2014: $1,788.9 million) respectively. The carrying
amounts of the Company’s current tax payable and deferred taxation at 31 March 2015 was $111.4 million (2014: $161.8
million) and $1,325.5 million (2014: $1,516.2 million) respectively.
4 Segment Information (in $ million)
For management purposes, the Group is organised into business units based on the nature of the services provided, and has
four reportable operating segments as follows:
(i) The airline operations segment provides passenger air transportation.
(ii) The engineering services segment is in the business of providing airframe maintenance and overhaul services, line
maintenance, technical ground handling services and fleet management programme. It also manufactures aircra cabin
equipment, refurbishes aircra galleys, provides technical and non-technical handling services and repair and overhaul
of hydro-mechanical aircra equipment.
(iii) The cargo operations segment is involved in air cargo transportation and related activities.
(iv) Other services provided by the Group, such as training of pilots, air charters and tour wholesaling, has been aggregated
under the segment “Others”.
Except as indicated above, no operating segments have been aggregated to form the above reportable operating segments.
Management monitors the operating results of its business units separately for the purpose of making decisions about
resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss which
in certain respects, as explained in the table below, is measured dierently from operating profit or loss in the consolidated
financial statements.
Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with third parties.
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