72
2013
Annual Report
8
a)
Income tax expense
Income tax is calculated based on management’s best estimates under current tax regulations, taking into
account foreseeable changes in those regulations.
b)
Deferred tax assets
Deferred tax assets are recognised for all unused tax loss carryforwards, deductible temporary differences and
available deductions to the extent that it is probable that sufficient taxable income will be available against
which these assets can be utilised. In order to determine the amount of the deferred tax assets to be
recognised, estimates are made of the amounts and dates on which future taxable profits will be obtained and
the reversal period of temporary differences.
c)
Useful lives and impairment of assets
The Company determines the estimated useful lives and related amortisation and depreciation charges of
assets based on the actual decline in value due to operation and use. The Company increases amortisation and
depreciation charges if the useful lives are shorter than previously estimated and writes down or writes off
technically obsolete or non-strategic assets that have been abandoned or sold, or when circumstances indicate
that their carrying amount might not be recoverable.
d)
Impairment of current assets
The Company impairs inventories and receivables based on their estimated recoverable amount.
e)
Provisions
The nature of the Company's business and operations requires the use of provisions based on the Company's
best estimates.
2.3.
Grouping of items
To facilitate understanding, certain items in the balance sheet, income statement, statement of changes in
equity and statement of cash flows have been aggregated, details of which are included in the relevant notes
to the annual accounts.
