TIPCO FOODS PUBLIC COMPANY LIMITED PAGE 118/ 119 Revenue from services is recognized when the outcome of a service can be estimated reliably based on the stage of completion of the transaction at the balance sheet date. When the outcome of a service can not be estimated reliably, revenue is recognized only to the extent of expenses that are recoverable. Interest income is recognized on the period of time. Rental income is recognized on the period of agreement. Dividend income is recognized when the right of receiving dividend is announced. 3.13. Employee Benefits Short – Term Employee Benefits Short – term employee benefits, which fall due wholly within 12 months after the end of period in which the employees render the related service, are recognized as expenses when incurred. Postemployment Benefits The Company and its subsidiaries and their employees have jointly a provident fund. The contributions from employees are deducted from monthly salaries and contributions by the Company and the subsidiaries. The fund’s assets are held in a separate trust fun and the Company and its subsidiaries’ contributions are recognized as expenses when incurred. The severance payments retirement under the labor law as a defined benefit plan, was calculated by a qualified actuary by using the projected unit credit method. The Company and its subsidiaries recognizes the actuarial gains and losses arising from defined benefit plans in other comprehensive income and all expenses related to postemployment benefit plans in profit or loss. 3.14. Income Tax Income tax expense represents the aggregate of current income tax expense and deferred tax. Current income tax expense and deferred tax are recognized in profit or loss, except for the extent that they related to a business combination, or items recognized directly in equity or in other comprehensive income. Current income tax represents the amount of expected income tax payable or recoverable on the taxable profit or loss for the period, using tax rates in accordance with the regulation in the Revenue Code. Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purpose and the amounts used for taxation purposes. The measurement of deferred tax reflects the tax consequences that would follow the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax liabilities is recognized for all income taxes payable in the future periods in respect of taxable temporary differences.
EN_Tipco_Annual Report 2014
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