ANNUAL REPORT 2008 - Gorenje Group

150
2008
Deferred tax is recognised using the balance sheet method, providing for temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and the
amounts used for taxation purposes. Deferred tax is not recognised for the following temporary
differences: the initial recognition of assets or liabilities in a transaction that is not a business combination
and that affects neither accounting nor taxable profit, and differences relating to investments
in subsidiaries and jointly controlled entities to the extent that it is probable that they will
not reverse in the foreseeable future. In addition, deferred tax is not recognised for taxable temporary
differences arising on the initial recognition of goodwill. Deferred tax is measured at the
tax rates that are expected to be applied to the temporary differences when they reverse, based
on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax
assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities
and assets, and they relate to income taxes levied by the same tax authority on the same taxable
entity, or on different tax entities, but they intend to settle current tax liabilities and assets on
a net basis or their tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will
be available against which the temporary difference can be utilised. Deferred tax assets are reviewed
at each reporting date and are reduced to the extent that it is no longer probable that the
related tax benefit will be realised.
( p ) E a r n i n g s p e r s h a r e
The Company presents basic earnings per share (EPS) data for its ordinary shares and diluted earnings
per share. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders
by the weighted average number of ordinary shares outstanding during the period.
(r) Comparative information
Comparative information has been mainly harmonised with the presentation of information in the
current year. Where required, adjustment of comparative data was carried out in order to comply
with the presentation of information in the current year.
(s) New standards and interpretations not yet adopted
A number of new standards, amendments to standards and interpretations are not yet effective for
the year ended 31 December 2008, and have not been applied in preparing these financial statements:
• IFRS 8 Operating Segments (effective as from 1 January 2009)
introduces the “management approach” to segment reporting, which becomes
mandatory for the financial statements for 2009.
Since segment reporting is only presented in the consolidated financial statements,
the standard shall have no impact on the Company’s financial statements.
• Revised IAS 23 Borrowing Costs (effective as from 1 January 2009)
removes the option to expense borrowing costs and requires that an entity capitalise
borrowing costs directly attributable to the acquisition, construction or
production of a qualifying asset as part of the cost of that asset.
The revised IAS 23 will become mandatory for the Company’s 2009 financial
statements and will constitute a change in accounting policy for the Company.
In accordance with the transitional provisions the Company will apply the
revised IAS 23 to qualifying assets for which capitalisation of borrowing costs
commences on or after the effective date.
• Amendments to IFRS 2 Share-based Payment (effective as from 1 January
2009)
The amendment clarifies the definition of vesting conditions and introduces the
concept of non-vesting conditions. Non-vesting conditions are to be reflected
in grant-date fair value and failure to meet non-vesting conditions will generally
result in treatment as a cancellation.