Page 424 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure
Central Retail Corporation Public Company Limited and its Subsidiaries
Notes to the financial statements
For the year ended 31 December 2021

(r) Commercial support from supplier

The Group has commercial support agreements with suppliers. The Group receive purchase rebate and
commercial income from performing as specified in the agreements. Commercial support relating to
purchase rebate are recognised as a reduction of a core cost price of a product, as such is considered part
of the purchase price and recognised in cost of sales upon sale of those inventories.

Commercial income is recognised in other income when all conditional service has been provided.

(s) Income tax

Income tax expense for the year comprises current and deferred tax, which is recognised in profit or loss
except to the extent that they relate to a business combination, or items recognised directly in equity or
in other comprehensive income.

Current tax is is recognised in respect of taxable income or loss for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous
years.

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax
is not recognised for the following the temporary differences: the initial recognition of goodwill; the
initial recognition of assets or liabilities in a transaction that is not a business combination and that
affects neither accounting nor taxable profit or loss; and differences relating to investments in
subsidiaries and joint ventures to the extent that it is probable that they will not reverse in the foreseeable
future.

The measurement of deferred tax reflects the tax consequences that would follow the manner in which
the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its
assets and liabilities, using tax rates enacted or substantively enacted at the reporting date. Current
deferred tax assets and liabilities are offset in the separate financial statements.

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be
available against which the temporary differences can be utilised. Deferred tax assets are reviewed at
each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will
be realised.

(t) Earnings per share

Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the
Company by the weighted average number of ordinary shares outstanding during the period.

5 Impact of COVID-19 pandemic

COVID-19 pandemic is still on going, while vaccines for COVID-19 are being rolled out during 2021.
Due to uncertainty of the situation in 2020, the Group applied accounting guidance on temporary
accounting relief measures for additional accounting options in response to impact from the situation of
COVID-19 in preparing the financial statements for the year ended 31 December 2020 by excluding
COVID-19 situation in impairment of assets, lease modifications and deferred tax assets. The accounting
guidance already expired on 31 December 2020, however there is no impact on the value of the Group’s
assets in 2021.

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424 Annual Report 2021 (Form 56-1 One-Report)