Annual Report - QuamIR

Notes to the Consolidated Financial Statements (Continued)
2 Summary of significant accounting policies (Continued)
2.23 Trade payables
Trade payables are recognised initially at fair value and
subsequently measured at amortised cost using the effective
interest method.
2.24 Financial liability at fair value through profit or
loss
Financial liability at fair value through profit or loss is financial
liability held for trading. A financial liability is classified in this
category as designated by the Group upon initial recognition.
2
2.23
2.24
Gain or losses arising from changes in the fair value of the
“financial liability at fair value through profit or loss” category are
presented in the consolidated income statement in the period in
which they arise.
2.25 Current and deferred income tax
The tax expense for the period comprises current and deferred
tax. Tax is recognised in the consolidated income statement,
except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax
is also recognised in other comprehensive income or directly in
equity, respectively.
2.25
The current income tax charge is calculated on the basis of
the tax laws enacted or substantively enacted at the balance
sheet date in the countries where the Group’s subsidiaries and
associated companies and jointly controlled entities operate and
generate taxable income. Management periodically evaluates
positions taken in tax returns with respect to situations in which
applicable tax regulation is subject to interpretation. It establishes
provisions where appropriate on the basis of amounts expected
to be paid to the tax authorities.
102 HKC (Holdings) Limited • Annual Report 2011