145 / 196
145
obligation and a reliable estimate can be made of the
amount of the obligation. If the effect is material,
provisions are determined by discounting the expected
future cash flows at a pre-tax rate that reflects current
market assessments of the time value of money and,
where appropriate, the risks specific to the liability.
Where the Group expects a provision to be reimbursed,
the reimbursement is recognised as a separate asset
but only when the reimbursement is virtually certain.
Provisions are recognised in the period in which
the Group becomes legally or constructively committed
to payment. Costs relating to the ongoing activities are
not classified as provisions.
2.16 Lease-where a Group is the lessee
Leases of assets under which all the risks and
benefits of ownership are effectively retained by the
lessor are classified as operating leases.
Payments made under operating leases are
recognised in the statement of comprehensive revenues
and expenses on a straight-line basis over the term of
the lease. Lease incentives granted are recognised in
the statement of comprehensive revenues and expenses
as an integral part of the total rental income. Contingent
rentals are charged to the statement of comprehensive
revenues and expenses for the accounting period in
which they are incurred.
When an operating lease is terminated before the
lease period has expired, any payment required to be
made to the lessor by way of penalty is recognised as an
expense in the period in which termination takes place.
2.17 Revenue
Revenue excludes value added taxes.
Service income is recognised upon performance
of services.
Where there are long-outstanding receivables
from listing fee and registrar fee collection over three
months, the Group considers the collectability of the
receivables as doubtful and ceases revenue recognition
on fees of related companies immediately.
Membership fees comprise initial and annual
fees. The initial fees are recognised as revenue on a
straight-line basis over a period of five years starting
from the first day on which the service is rendered.
Annual fees are recognised upon performance of services.
Interest income is recognised on a time proportion
basis, taking into account the principal outstanding and
the effective rate over the period to maturity, when it is
determined that such income will accrue to the Group.
Dividend income is recognised in the statement
of comprehensive revenues and expenses when the
Group’s right to receive payment is established.
Other income is recognised when the right to
receive cash is established.
2.18 Dire
ctors’ remuneration
Directors’ remuneration comprises the benefits
paid to the Board of Governors of the SET and the Board
of Directors of subsidiaries including benefits received
by the members of sub-committees (excluding salaries,
bonus and related benefits payable to management).
2.19 Current and deferred income taxes
The tax expense for the period comprises current
and deferred tax. Tax is recognised in revenue or
expense, except to the extent that it relates to items
recognised in other comprehensive revenues and
expenses or directly in fund balance. In this case the
tax is also recognised in other comprehensive revenues
and expenses or directly in fund balance, respectively.
The current income tax charge is calculated
on the basis of the tax laws enacted or substantively
enacted at the end of reporting period. Management
periodically evaluates positions taken in tax returns with
respect to situations in which applicable tax regulation