2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.22 Taxes (continued)
(c)
Sales tax
Revenues, expenses and assets are recognised net of the amount of sales tax except:
–
Where the sales tax incurred on a purchase of assets or services is not recoverable
from the taxation authority, in which case the sales tax is recognised as part of the
cost of acquisition of the asset or as part of the expense item as applicable; and
–
Receivables and payables that are stated with the amount of sales tax included.
2.23 Segment reporting
For management purposes, the Group is organised into operating segments based on their products
and services which are independently managed by the respective segment managers responsible for
the performance of the respective segments under their charge. The segment managers report directly
to the management of the Company who regularly review the segment results in order to allocate
resources to the segments and to assess the segment performance. Additional disclosures on each of
these segments are shown in Note 30, including the factors used to identify the reportable segments
and the measurement basis of segment information.
2.24 Share capital and share issue expenses
Proceeds from issuance of ordinary shares are recognised as share capital in equity. Incremental costs
directly attributable to the issuance of ordinary shares are deducted against share capital.
2.25 Treasury shares
The Group’s own equity instruments, which are reacquired (treasury shares) are recognised at cost
and deducted from equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue
or cancellation of the Group’s own equity instruments. Any difference between the carrying amount
of treasury shares and the consideration received, if reissued, is recognised directly in equity. Voting
rights related to treasury shares are nullified for the Group and no dividends are allocated to them
respectively.
73
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2015
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
