Notes to the Financial Statements
(Cont’d)
For the year ended 30 April 2015
(In Singapore Dollars)
57
STAMFORD TYRES CORPORATION LIMITED
BUILDING ON OUR EXTENSIVE NETWORK
2.
Summary of significant accounting policies (cont’d)
2.22
Revenue recognition (cont’d)
(d)
Advertising and promotional rebates
Advertising and promotional rebates from suppliers are recognised as follows:
z
those that are determined based on the amount of purchases made during the financial
year are credited against marketing and promotion expenses in profit or loss; and
z
those that are reimbursed at the discretion of the suppliers are credited against marketing
and promotion expenses in profit or loss when these are received.
(e)
Dividend income
Dividend income is recognised when the Group’s right to receive payments is established.
(f)
Interest income
Interest income is recognised using the effective interest method.
(g)
Rental income
Rental income arising from operating leases on leasehold building is accounted for on a straight-
line basis over the lease terms.
2.23
Taxes
(a)
Current income tax
Current income tax assets and liabilities for the current and prior periods are measured at the
amount expected to be recovered from or paid to the taxation authorities.The tax rates and tax laws
used to compute the amount are those that are enacted or substantively enacted at the end of the
reporting period, in the countries where the Group operates and generates taxable income.
Current income taxes are recognised in profit or loss except to the extent that the tax relates to
items recognised outside profit or loss, either in other comprehensive income or directly in equity.
Management periodically evaluates positions taken in the tax returns with respect to situations in
which applicable tax regulations are subject to interpretation and establishes provisions where
appropriate.
(b)
Deferred tax
Deferred tax is provided using the liability method on temporary differences at the end of each
reporting period between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes.
