118 / 196
116
Annual Report
2015
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 for security companies who provided initial support
and for security companies subscripted from 2015 onward, the
initial fee are recognised as revenue in the commencing. 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
Directors’ 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 is subject to interpretation. It establishes
provisions where appropriate on the basis of amounts expected
to be paid to the tax authorities.
Deferred income tax is recognised, using the liability
method, on temporary differences arising from differences
between the tax base of assets and liabilities and their carrying
amounts in the financial statements. Deferred income tax is
determined using tax rates (and laws) that have been enacted
or substantially enacted by the end of the reporting period and
are expected to apply when the related deferred income tax
asset is realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised only to the
extent that it is probable that future taxable profit will be
available against which the temporary differences can be
utilised.
Deferred income tax assets and liabilities are offset when
there is a legally enforceable right to offset current tax assets
against current tax liabilities and when the deferred income
tax assets and liabilities relate to income taxes levied by the
same taxation authority on either the same taxable entity or
different taxable entities where there is an intention to settle
the balances on a net basis.