Powering growth - Aztech Group Ltd - Investor Relations
Powering growth - Aztech Group Ltd - Investor Relations Powering growth - Aztech Group Ltd - Investor Relations
58a z t e c h a n n u a l r e p o r t 2 0 0 9F i n a n c i a l S t a t e m e n t s2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)SHARE-BASED PAYMENTS - The Group issues equity-settled share-based payments to certain employees. Equity-settled share-basedpayments are measured at fair value (excluding the effect of non market-based vesting conditions) at the date of grant. The fair value determinedat the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group’sestimate of shares that will eventually vest and adjusted for the effect of non market-based vesting conditions.Fair value is measured using the Black-Scholes pricing model. The expected life used in the model has been adjusted, based on management’sbest estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.REVENUE RECOGNITION - Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimatedcustomer returns, rebates and other similar allowances.Sale of goodsRevenue from the sale of goods is recognised when all the following conditions are satisfied:• the Group has transferred to the buyer the significant risks and rewards of ownership of the goods;• the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over thegoods sold;• the amount of revenue can be measured reliably;• it is probable that the economic benefits associated with the transaction will flow to the Group; and• the costs incurred or to be incurred in respect of the transaction can be measured reliably.Chartering incomeRevenue from chartering income is recognised on a straight-line basis over the relevant lease period.Interest incomeInterest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the ratethat exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount.Rental incomeRental income from investment properties is recognised on a straight-line basis over the term of the relevant lease.Dividend incomeDividend income from investments is recognised when the shareholders’ rights to receive payment have been established.
F i n a n c i a l S t a t e m e n t sa z t e c h a n n u a l r e p o r t 2 0 0 9592 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)BORROWING COSTS - Borrowing costs directly attributable to the acquisition, construction, or production of qualifying assets, which are assetsthat necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such timeas the assets are substantially ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowingspending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.All other borrowing costs are recognised in profit or loss in the period in which they are incurred.RETIREMENT BENEFIT COSTS - Payments to defined contribution retirement benefit plans are charged as an expense as they fall due.Payments made to state-managed retirement benefit schemes, such as the Singapore Central Provident Fund, are dealt with as payments todefined contribution plans where the Group’s obligations under the plans are equivalent to those arising in a defined contribution retirementbenefit plan.EMPLOYEE LEAVE ENTITLEMENT - Employee entitlements to annual leave are recognised when they accrue to employees. A provision is madefor the estimated liability for annual leave as a result of services rendered by employees up to the end of the reporting period.PROFIT SHARING SCHEME - Certain directors are entitled to a share of the profit under the profit sharing scheme as disclosed in the Directors’Report. A provision is made for the estimated liability under the profit sharing scheme.INCOME TAX - Income tax expense represents the sum of the tax currently payable and deferred tax.The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensiveincome because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are nottaxable or tax deductible. The Group’s liability for current tax is calculated using tax rates (and tax laws) that have been enacted or substantivelyenacted in countries where the Group and the subsidiaries operate by the end of the reporting period.Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements and the correspondingtax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities aregenerally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxableprofits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if thetemporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in atransaction that affects neither the taxable profit nor the accounting profit.Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries, except where the Group is able tocontrol the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probablethat sufficient taxable profits will be available to allow all or part of the asset to be recovered.Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realised based on thetax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
- Page 9 and 10: L e t t e r t o s h a r e h o l d e
- Page 11 and 12: B o a r d o f D i r e c t o r sa z
- Page 13 and 14: Operations ReviewAztech Electronics
- Page 15 and 16: o p e r a t i o n s r e v i e wa z
- Page 17 and 18: Operations ReviewAz Marine / AZ Uni
- Page 19 and 20: o p e r a t i o n s r e v i e wa z
- Page 21 and 22: o u r C O m m i t m e n ta z t e c
- Page 23 and 24: C o r p o r a t e G o v e r n a n c
- Page 25 and 26: C o r p o r a t e G o v e r n a n c
- Page 27 and 28: C o r p o r a t e G o v e r n a n c
- Page 29 and 30: C o r p o r a t e G o v e r n a n c
- Page 31 and 32: C o r p o r a t e G o v e r n a n c
- Page 33 and 34: C o r p o r a t e G o v e r n a n c
- Page 35 and 36: F i n a n c i a l S t a t e m e n t
- Page 37 and 38: F i n a n c i a l S t a t e m e n t
- Page 39 and 40: F i n a n c i a l S t a t e m e n t
- Page 41 and 42: F i n a n c i a l S t a t e m e n t
- Page 43 and 44: F i n a n c i a l S t a t e m e n t
- Page 45 and 46: F i n a n c i a l S t a t e m e n t
- Page 47 and 48: F i n a n c i a l S t a t e m e n t
- Page 49 and 50: F i n a n c i a l S t a t e m e n t
- Page 51 and 52: F i n a n c i a l S t a t e m e n t
- Page 53 and 54: F i n a n c i a l S t a t e m e n t
- Page 55 and 56: F i n a n c i a l S t a t e m e n t
- Page 57 and 58: F i n a n c i a l S t a t e m e n t
- Page 59: F i n a n c i a l S t a t e m e n t
- Page 63 and 64: F i n a n c i a l S t a t e m e n t
- Page 65 and 66: F i n a n c i a l S t a t e m e n t
- Page 67 and 68: F i n a n c i a l S t a t e m e n t
- Page 69 and 70: F i n a n c i a l S t a t e m e n t
- Page 71 and 72: F i n a n c i a l S t a t e m e n t
- Page 73 and 74: F i n a n c i a l S t a t e m e n t
- Page 75 and 76: F i n a n c i a l S t a t e m e n t
- Page 77 and 78: F i n a n c i a l S t a t e m e n t
- Page 79 and 80: F i n a n c i a l S t a t e m e n t
- Page 81 and 82: F i n a n c i a l S t a t e m e n t
- Page 83 and 84: F i n a n c i a l S t a t e m e n t
- Page 85 and 86: F i n a n c i a l S t a t e m e n t
- Page 87 and 88: F i n a n c i a l S t a t e m e n t
- Page 89 and 90: F i n a n c i a l S t a t e m e n t
- Page 91 and 92: F i n a n c i a l S t a t e m e n t
- Page 93 and 94: F i n a n c i a l S t a t e m e n t
- Page 95 and 96: F i n a n c i a l S t a t e m e n t
- Page 97 and 98: F i n a n c i a l S t a t e m e n t
- Page 99 and 100: F i n a n c i a l S t a t e m e n t
- Page 101 and 102: F i n a n c i a l S t a t e m e n t
- Page 103 and 104: F i n a n c i a l S t a t e m e n t
- Page 105 and 106: F i n a n c i a l S t a t e m e n t
- Page 107 and 108: F i n a n c i a l S t a t e m e n t
- Page 109 and 110: F i n a n c i a l S t a t e m e n t
58a z t e c h a n n u a l r e p o r t 2 0 0 9F i n a n c i a l S t a t e m e n t s2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)SHARE-BASED PAYMENTS - The <strong>Group</strong> issues equity-settled share-based payments to certain employees. Equity-settled share-basedpayments are measured at fair value (excluding the effect of non market-based vesting conditions) at the date of grant. The fair value determinedat the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the <strong>Group</strong>’sestimate of shares that will eventually vest and adjusted for the effect of non market-based vesting conditions.Fair value is measured using the Black-Scholes pricing model. The expected life used in the model has been adjusted, based on management’sbest estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.REVENUE RECOGNITION - Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimatedcustomer returns, rebates and other similar allowances.Sale of goodsRevenue from the sale of goods is recognised when all the following conditions are satisfied:• the <strong>Group</strong> has transferred to the buyer the significant risks and rewards of ownership of the goods;• the <strong>Group</strong> retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over thegoods sold;• the amount of revenue can be measured reliably;• it is probable that the economic benefits associated with the transaction will flow to the <strong>Group</strong>; and• the costs incurred or to be incurred in respect of the transaction can be measured reliably.Chartering incomeRevenue from chartering income is recognised on a straight-line basis over the relevant lease period.Interest incomeInterest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the ratethat exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount.Rental incomeRental income from investment properties is recognised on a straight-line basis over the term of the relevant lease.Dividend incomeDividend income from investments is recognised when the shareholders’ rights to receive payment have been established.
Change language