Deferred tax assets are recognised to the extent that it is probable that future taxable profi ts will be available against
which the temporary differences can be utilised. Deferred tax is provided on temporary differences arising on
investments in subsidiaries, associates and joint ventures, except where the timing of the reversal of the temporary
difference can be controlled and it is probable that the temporary difference will not be reversed in the foreseeable
future.
Deferred tax related to fair value re-measurement of available- for-sale investments, which are recognised outside profi t or
loss, is also recognised outside profi t or loss i.e. in other comprehensive income and accumulated in the available-for-
sale revaluation reserves.
2.19 Financial guarantees A fi nancial guarantee is initially recognised in the fi nancial
statements at fair value on the date the guarantee was given. Subsequent to initial recognition, the Group’s liability under
each guarantee is measured at the higher of the initial measurement less amortisation and the best estimate of the
expenditure required to settle any fi nancial obligation arising at the balance sheet date.
The exposure to potential losses associated with a fi nancial guarantee is monitored periodically. When there is objective
evidence indicating probability of losses occurring, a provision is recognised for the fi nancial guarantee.
2.20 Share capital and treasury shares Ordinary shares and preference shares which do not result in
the Group having a contractual obligation to deliver cash or another fi nancial asset, or to exchange fi nancial assets or
fi nancial liabilities with the holder under conditions that are potentially unfavourable to the Group, are classifi ed as equity.
Incremental external costs directly attributable to the issuance of new ordinary shares are deducted against share capital.
When any entity within the Group purchases the Company’s ordinary shares “treasury shares”, the consideration paid
including any directly attributable incremental cost is presented as a component within equity, until they are cancelled, sold or
reissued.
When treasury shares are subsequently cancelled, the cost of treasury shares is deducted against either the share capital
account or retained earnings. When treasury shares are subsequently sold or reissued, any realised gain or loss on sale
or reissue, net of any directly attributable incremental transaction costs and related income tax, is recognised in the
capital reserve of the Company.
2.21 Dividend payments Interim dividends are recorded during the fi nancial year in
which they are declared payable. Final dividends are recorded during the fi nancial year in which the dividends are approved
by the shareholders at the Annual General Meeting.
2.22 Offsetting fi nancial instruments Certain fi nancial assets and liabilities offset each other and the
net amount is reported in the balance sheet when there is a legally enforceable right to set off the recognised amounts and
there is an intention to settle them on a net basis, or realise the asset and settle the liability simultaneously.
2.23 Operating leases Operating leases are charged to the income statement on a
