kAThMANdu  annual report 2012 37 (E) REVENuE RECOGNITION (i) Sales of goods (ii) Sales of services (G) GOOdS ANd SERVICES TAX (GST) (iii) Interest income (iv) dividend income (h) LEASES The Group is the lessee (F) CuRRENT ANd dEFERREd INCOME TAX (I) IMPAIRMENT OF NON-FINANCIAL ASSETS (J) CASh ANd CASh EQuIVALENTS been enacted or substantially enacted by the balance sheet  date and are expected to apply when the related deferred  income tax asset is realised or the deferred income tax liability  is settled. revenue comprises the fair value of the consideration received  or receivable for the sale of goods and services, excluding  Goods and Services tax, rebates and discounts and after  eliminating sales within the Group. revenue is recognised as  follows: deferred income tax assets are recognised to the extent that  it is probable that future taxable profit will be available against  which the temporary differences can be utilised. deferred  income tax is provided on temporary differences arising on  investments in subsidiaries and associates, except where the  timing of the reversal of the temporary difference is controlled  by the Group and it is probable that the temporary difference  will not reverse in the foreseeable future. Sales of goods are recognised when a Group entity has  delivered a product to the customer. retail sales are usually  in cash or by credit card. the recorded revenue is the gross  amount of sale (excluding GSt), including credit card fees  payable for the transaction. Such fees are included in selling expenses. Management fees are recognised in the accounting period in  which the services are rendered. the income statement and the cash flow statement have been prepared so that all components are stated exclusive of  GSt. all items in the balance sheet are stated net of GSt, with the exception of receivables and payables, which include  GSt invoiced. Interest income is recognised on a time-portion basis using the  effective interest method. dividend income is recognised when the right to receive  payment is established. leases in which a significant portion of the risks and rewards  of ownership are retained by the lessor are classified as  operating leases. payments made under operating leases (net  of any incentives received from the lessor) are charged to the  income statement on a straight-line basis over the period of  the lease. the tax expense for the year comprises current and deferred  tax. tax is recognised in the income statement, except to the  extent that it relates to items recognised directly in equity. In  this case, the tax is also recognised in equity. assets are reviewed for impairment whenever events or  changes in circumstances indicate that the carrying amount  may not be recoverable. Intangible assets that have an  indefinite useful life, including goodwill, are not subject  to amortisation and are tested annually for impairment  irrespective of whether any circumstances identifying a  possible impairment have been identified. an impairment loss  is recognised for the amount by which the asset’s carrying  amount exceeds its recoverable amount. the recoverable  amount is the higher of an asset’s fair value less costs to sell  and value in use. For the purposes of assessing impairment, assets are grouped  at the lowest levels for which there are separately identifiable  cash flows (cash generating units). the current income tax charge is calculated on the basis of  the tax laws enacted or substantively enacted at the balance  sheet date in the countries where the Company’s subsidiaries  operate and generate taxable income. Management  periodically evaluates positions taken in tax returns with  respect to situations in which applicable tax regulations is  subject to interpretation and establishes provisions where  appropriate on the basis of amounts expected to be paid to the  tax authorities. deferred income tax is provided in full, using the liability  method, on temporary differences arising between tax  bases of assets and liabilities and their carrying amounts  in the consolidated financial statements. however, the  deferred income tax is not accounted for if it arises from initial  recognition of an asset or liability in a transaction other than  a business combination that at the time of the transaction  affects neither accounting nor taxable profit or loss. deferred  income tax is determined using tax rates (and laws) that have  Cash and cash equivalents includes cash on hand, deposits  held at call with financial institutions, other short-term, highly  liquid investments with original maturities of three months or 