79
Annual Report 2015
TEHO INTERNATIONAL INC LTD.
18 DEFERRED TAX LIABILITIES (CONT’D)
Deferred tax liabilities and assets are offset when there is a legally enforceable right to
set off current tax assets against current tax liabilities and when the deferred taxes relate
to the same taxation authority. The amounts, determined after appropriate offsetting,
are as follows:
Group
2015
2014
(Restated)*
$
$
Deferred tax liabilities
5,457,028 5,236,596
* See Note 27 for more details.
Unrecognised deferred tax liabilities
As at 30 June 2015, deferred tax liabilities of $25,311 (2014: Nil) for temporary differences
of $84,371 (2014: Nil) related to investments in subsidiaries were not recognised because
the Company controls whether the liability will be incurred and it is satisfied that it will not
be incurred in the foreseeable future.
Unrecognised deferred tax assets
Deferred tax assets have not been recognised in respect of the following items because it
is not probable that future taxable profit will be available against which the Group can utilise
the benefits therefrom:
Group
2015
2014
$
$
Deductible temporary differences
1,079,798
–
Tax losses
2,818,501
315,944
The deductible temporary differences do not expire under current tax legislation. The tax
losses are subject to agreement by the tax authorities and compliance with tax regulations
in the respective countries in which certain subsidiaries operate.
18 DEFERRED TAX LIABILITIES (CONT’D)
The tax losses with expiry dates are as follows:
Group
2015
2014
$
$
Expiry dates
- Within 1 to 5 years
2,818,501
315,944
19 REVENUE
Group
2015
2014
$
$
Sale of goods
55,620,664 55,293,401
Revenue from property development (recognised
on percentage of completion method)
2,317,175
990,107
Revenue from property development (recognised
on completion of construction method)
– 4,100,000
Provision of real estate services
3,719,257
–
61,657,096 60,383,508
Significant accounting estimates
The stage of completion method is applied on a cumulative basis in each accounting period
to the current estimates of revenue and costs of development property. Changes in the
estimate of revenue or costs, or the effect of a change in the estimate of the outcome of
a development property could impact the amount of revenue and expenses recognised
in profit or loss in the period in which the change is made and in subsequent periods.
Such impact could potentially be significant. Significant judgement is required in estimating
reasonable amounts of variation claims to be recognised as cost in project budgets and
in determining if the Group has to make provisions for any potential liquidated damages
exposure and other losses.
NOTES TO THE
FINANCIAL STATEMENTS
Year ended 30 June 2015
