SEC Form 20-IS - iRemit Global Remittance

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Income Taxes
Current tax
Current tax assets and liabilities for the current and prior periods are measured at the amount
expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used
to compute the amount are those that are enacted or substantively enacted at the balance sheet
date.
Deferred tax
Deferred tax is provided, using the balance sheet liability method, on all temporary differences at
the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes.
Deferred tax liabilities are recognized for all taxable temporary differences, including asset
revaluations. Deferred tax assets are recognized for all deductible temporary differences,
carryforward of unused tax credits from excess minimum corporate income tax (MCIT) over the
regular corporate income tax (RCIT), if any, and unused net operating loss carryover (NOLCO), if
any, to the extent that it is probable that taxable income will be available against which the
deductible temporary differences and carryforward of unused tax credits from excess MCIT over
RCIT and unused NOLCO can be utilized.
Deferred tax liabilities are not provided on non-taxable temporary differences associated with
investments in associates where the timing of the reversal of the temporary differences can be
controlled and it is probable that the temporary differences will not reverse in the foreseeable
future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to
the extent that it is no longer probable that sufficient taxable income will be available to allow all
or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at
each balance sheet date and are recognized to the extent that it has become probable that future
taxable income will allow the deferred tax assets to be recovered.
Deferred tax assets and deferred tax liabilities are measured at the tax rates that are applicable to
the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that
have been enacted or substantially enacted at the balance sheet date.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set
off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable
entity and the same taxation authority.
Current tax and deferred tax relating to items recognized directly in equity are also recognized in
equity and not in the consolidated statement of income.
Borrowing Costs
Borrowing costs are recognized as an expense when incurred.
Equity
Capital stock is measured at par value for all shares issued and outstanding. When the shares are
sold at a premium, the difference between the proceeds and the par value is credited to ‘Capital
paid-in excess of par value’ account. Direct costs incurred related to issuance of equity, such as
underwriting, accounting and legal fees, printing costs and taxes are chargeable to ‘Capital paid-in
excess of par value’. If the ‘Capital paid-in excess of par value’ is not sufficient, the excess is
charged to profit or loss.
*SGVMC116501*