82
TEHO INTERNATIONAL INC LTD.
Annual Report 2016
NOTES
TO THE FINANCIAL STATEMENTS
Year ended 30 June 2016
19 DEFERREDTAX 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
2016
2015
$
$
Deferred tax liabilities
2,599,208 5,457,028
Unrecognised deferred tax liabilities
As at 30 June 2016, deferred tax liabilities of $130,201 (2015: $25,311) for temporary
differences of $382,946 (2015: $84,371) 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
2016
2015
$
$
Deductible temporary differences
3,062,597 1,079,798
Tax losses
6,355,862 2,818,501
The deductible temporary differences and tax losses do not expire under current local 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.
20 REVENUE
Group
2016
2015
$
$
Sale of goods
52,276,349 55,620,664
Revenue from property development (recognised on
percentage of completion method)
850,000 2,317,175
Provision of real estate services
4,270,420 3,719,257
57,396,769 61,657,096
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.
