3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(continued)
3.19 Tax
(continued)
A deferred tax asset is recognised to the extent that it is probable that future taxable profit will be available against which
the temporary differences can be utilised.
Deferred tax is provided on temporary differences arising on investments in subsidiaries, associates and jointly-controlled
entities, except where the timing of the reversal of the temporary difference can be controlled and it is probable that the
temporary difference will not be reversed in the foreseeable future.
3.20 Dividend distribution
Dividend distribution to the Company’s shareholders is recognised as a liability in the financial statements in the period in which
the dividends are approved by the Company’s shareholders.
3.21 Earnings per share
The Group presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share is calculated by
dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary
shares outstanding during the year, adjusted for own shares held. Diluted earnings per share is determined by adjusting the
profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding, adjusted
for own shares held, for the effects of all dilutive potential ordinary shares, which comprise convertible notes and share options
granted to employees.
3.22 Segment reporting
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and
incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. All
operating segments’ operating results are reviewed regularly by the Group’s President (chief operating decision-maker) to
make discussions about resources to be allocated to the segment and assess its performance, and for which discrete financial
information is available.
Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on
a reasonable basis. Inter-segment pricing is determined based on terms agreed between the segment concerned.
Segment capital expenditure comprises additions to property, plant and equipment and intangible assets.
75
TELECHOICE INTERNATIONAL LIMITED
2015 ANNUAL REPORT
NOTES TO THE
FINANCIAL STATEMENTS
