WILLAS-ARRAY ELECTRONICS (HOLDINGS) LIMITED
86
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2016
3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
– continued
Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying
assets, which are assets that necessarily take a substantial period of time to get ready for their
intended use or sale, are added to the cost of those assets, until such time as the assets are
substantially ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their
expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in profit or loss in the year in which they are incurred.
Retirement benefit costs
Payments to defined contribution retirement benefit plans, state-managed retirement benefit
schemes and the mandatory provident fund scheme in Hong Kong (the “MPF”) are recognised as
an expense when employees have rendered the services entitling them to the contributions.
Short-term employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual
leave and sick leave in the period the related service is rendered at the undiscounted amount of the
benefits expected to be paid in exchange for that service.
Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted
amount of the benefits expected to be paid in exchange for the related service.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit
before tax’ as reported in the consolidated statement of profit or loss and other comprehensive
income because of income or expense that are taxable or deductible in other years and items that
are never taxable or deductible. The Group’s current tax is calculated using tax rates that have
been enacted or substantively enacted by the end of each reporting period.
