WILLAS-ARRAY ELECTRONICS (HOLDINGS) LIMITED
88
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2016
3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
– continued
Taxation
– continued
Current and deferred tax
Current and deferred tax are recognised in profit or loss, except when they relate to items that
are recognised in other comprehensive income or directly in equity, in which case, the current and
deferred tax are also recognised in other comprehensive income or directly in equity respectively.
Where current tax or deferred tax arises from the initial accounting for a business combination, the
tax effect is included in the accounting for the business combination.
Intangible assets
Internally-generated intangible assets – research and development expenditure
Expenditure on research activities is recognised as an expense in the year in which it is incurred.
An internally-generated intangible asset arising from development activities (or from the
development phase of an internal project) is recognised if, and only if, all of the following have been
demonstrated:
• the technical feasibility of completing the intangible asset so that it will be available for use or
sale;
• the intention to complete the intangible asset and use or sell it;
• the ability to use or sell the intangible asset;
• how the intangible asset will generate probable future economic benefits;
• the availability of adequate technical, financial and other resources to complete the
development and to use or sell the intangible asset; and
• the ability to measure reliably the expenditure attributable to the intangible asset during its
development.
