Page 236 - BTSGroup ONE REPORT 2021/22_EN

234 l Introduction l Nature of Business l Organisation and Shareholding Structure l Business Review l Corporate Governance l Financial Statements l Other Information l

Actuarial gains and losses arising from other long-term benefits are Deferred tax
recognised immediately in profit and loss. Deferred income tax is provided on temporary differences between the
tax bases of assets and liabilities and their carrying amounts at the end
Past service costs are recognised in profit or loss on the earlier of the of each reporting period, using the tax rates enacted at the end of the
date of the plan amendment or curtailment and the date that the Group reporting period.
recognises restructuring-related costs.

The Group recognises deferred tax liabilities for all taxable temporary
4.25 Provisions differences while it recognises deferred tax assets for all deductible
General temporary differences and tax losses carried forward to the extent that

Provisions are recognised when the subsidiaries have a present obligation it is probable that future taxable profit will be available against which
as a result of a past event, it is probable that an outflow of resources such deductible temporary differences and tax losses carried forward
embodying economic benefits will be required to settle the obligation, can be utilised.
and a reliable estimate can be made of the amount of the obligation.
At each reporting date, the Group reviews and reduce the carrying
amount of deferred tax assets to the extent that it is no longer probable
Major maintenance or restoration of elevated train projects under
service concession that sufficient taxable profit will be available to allow all or part of the
deferred tax asset to be utilised.
The Group has contractual obligations to maintain or restore the elevated
train projects under service concession to a specified level of service The Group records deferred tax directly to shareholders’ equity if the
ability. The obligations are recognised and measured at the best estimate tax relates to items that are recorded directly to shareholders’ equity.
of the expenditure that would be required to settle the present obligation
at the end of the reporting period.
4.27 Financial instruments
The Group initially measures financial assets at its fair value plus,
4.26 Income tax
in the case of financial assets that are not measured at fair value through
Income tax expense represents the sum of corporate income tax currently profit or loss, transaction costs. However, trade receivables, that do not
payable and deferred tax. contain a significant financing component or for which at contract
inception the Group expected payment by the customer less than one
Current tax year and the Group has applied the practical expedient regarding not

Current income tax is provided in the accounts at the amount expected to adjust the effects of a significant financing component, are measured
to be paid to the taxation authorities, based on taxable profits determined at the transaction price as disclosed in the accounting policy relating
in accordance with tax legislation. to revenue recognition.