Page 60 - Stellar IAR2015

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (CONTINUED)1.8.3. Share-based payments to acquire nancial assetsEquity instruments of the Company issued as consideration for the acquisition of nancial assets are treated as equity-settled share-based payment transactions. Equity-settled share-based payment transactions are accounted for by measuring the fair value of goods and services (including nancial assets) received with a corresponding increase in equity, unless that fair value cannot be estimated reliably in which case the Company measures their value, and the corresponding increase in equity, indirectly, by reference to the fair value of the equity instruments granted.1.9. TaxationIncome tax expense represents the sum of the tax currently payable and deferred tax.1.9.1. Current taxationThe tax currently payable is based on taxable pro t for the year. Taxable pro t di ers from pro t as reported in the statement of comprehensive income as it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.1.9.2. Deferred taxationDeferred taxation is provided using the balance sheet method based on temporary di erences. Temporary di erences are di erences between carrying amounts of assets and liabilities for nancial reporting purposes and their tax base. The amount of deferred taxation provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities using tax rates enacted or substantively enacted at the at the reporting date.A deferred tax asset or liability is recognised for all temporary di erences, except to the extent that the deferred tax it arises from the initial recognition of goodwill in a business combination or, an asset or liability in a transaction which is not a business combination and at the time of the transaction a ects neither accounting pro t nor taxable pro t. Furthermore, a deferred tax asset is only recognised to the extent that it is probable that future taxable pro t will be available against which the deductible temporary di erence can be utilised.Deferred tax assets and deferred tax liabilities are o set when the Group has a legally enforceable right to o set the current tax assets and current tax liabilities and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or di erent taxable entities which intend to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which signi cant amounts of deferred tax liabilities or assets are expected to be settled or recovered.Deferred tax assets and deferred tax liabilities are not discounted.1.9.3. Dividend withholding taxWithholding tax paid or payable to taxation authorities on dividends paid to shareholders is charged to equity as part of the dividends.1.10. RevenueRevenue is recognised only when it is probable that the economic bene ts associated with the transaction will ow to the Group and the amount of revenue can be reliably estimated.1.10.1. Fair value gains / lossesFinancial instruments held at fair value through pro t or loss are valued at each reporting date. The respective fair values are determined in accordance with IFRS 13 (refer to 1.5).1.10.2. Interest incomeInterest is recognised in pro t or loss using the e ective interest rate method.1.10.3. Dividend incomeDividend income is recognised in pro t or loss on the date the Company’s right to receive payment has been established.56 | STELLAR CAPITAL PARTNERS