Page 88 - Sundance Resources Ltd Annual Report 2013

86 SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2013
NOTES TO THE
FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2013
The fair value determined at the grant date of the equity-settled share-based payments is expensed on a
straight-line basis over the vesting period, based on the Group’s estimate of the equity instruments that will
eventually vest.
At each reporting date, the Group revises its estimate of the number of equity instruments expected to vest.
The impact of the revision of the original estimates, if any, is recognised in profit or loss over the remaining
vesting period, with the corresponding adjustment to the equity-settled employee benefits reserve.
Equity-settled share-based payments transactions with other parties are measured at the fair value of the goods
and services received, except where the fair value cannot be estimated reliably, in which case they are at the
fair value of the equity instrument granted, measured at the date the entity obtains the goods or the counterparty
renders the service.
f) Income Tax
Current Tax
Current income tax is calculated by reference to the amount of income taxes payable or recoverable in respect
to the taxable profit or tax loss for the period. It is calculated using the tax rates that have been enacted or are
substantially enacted by the balance sheet date. Current tax for current and prior periods is recognised as a
liability (or asset) to the extent that it is unpaid (or refundable).
Deferred Tax
Deferred tax is accounted for using the balance sheet liability method. Temporary differences are differences
arising between the tax bases of an asset or liability and its carrying amount in the financial statements.
The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes.
In principle, deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets
are recognised to the extent that it is probable that sufficient taxable amounts will be available against which
deductible temporary differences or unused tax losses and tax offsets can be utilised. However, deferred
tax assets or liabilities are not recognised if the temporary differences giving rise to them arise from the initial
recognition of assets and liabilities (other than a result of a business combination) which affects neither taxable
income nor accounting profit. Furthermore, a deferred tax liability is not recognised in relation to taxable
temporary differences arising from the initial recognition of goodwill.
Deferred tax liabilities are recognised for taxable temporary differences associated with investments in
subsidiaries and associates and interests in joint ventures except where the Group is able to control the reversal
of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable
future. Deferred tax assets arising from deductible temporary differences associated with these investments and
interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against
which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable
future.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period(s) when
the asset and liability giving rise to them are realised or settled, based on tax rates (and tax laws) that have
been enacted or substantially enacted by reporting date. The measurement of deferred tax liabilities and assets
reflects the tax consequences that would follow from the manner in which the Group expects, at the reporting
date, to recover or settle the carrying amounts of its assets and liabilities.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same
taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.
Current and deferred tax for the period
Current and deferred tax is recognised as an expense or income in profit or loss, except when it relates to items
that are recognised outside profit or loss (whether in other comprehensive income or directly in equity) in which
case, the tax is also recognised outside of profit or loss.
Note 2. SIGNIFICANT ACCOUNTING POLICIES (continued)
Critical accounting judgements and the key sources
of estimation uncertainty (continued)
e) Share-based payments (continued)