Page 48 - GTBANK GAMBIA ANNUAL REPORT 2021

taxable profits will be available against which the
temporary differences can be utilised.
3.18 Net trading income
Unrecognised deferred tax assets are reassessed at each
Net trading income comprises of gains and losses related reporting date and recognised to the extent that it has
to trading assets and liabilities and foreign exchange become probable that future taxable profits will be
differences. available against which they can be used.

The amount of deferred tax provided is based on the
expected manner of realization or settlement of the
carrying amount of the asset or liability and is not
3.19 Operating expenses discounted. Deferred tax assets are reviewed at each

Expenses are decreases in economic benefits during the reporting date and are reduced to the extent that it is no
longer probable that the related tax benefit will be
accounting year in the form of outflows, depletion of realized.
assets or incurrence of liabilities that result in decrease of
equity, other than those relating to distribution to equity
participants. 3.21. Earnings per share
Expenses are recognized on an accruals basis regardless
of the time of spending cash. Expenses are recognized The Bank presents basic Earnings per Share (EPS) for its
in the income statement when a decrease in future ordinary shares. Basic EPS is calculated by dividing the
economic benefit related to a decrease in an assets or an profit or loss attributable to ordinary shareholders of the
increase of a liability has arisen that can be measured Bank by the weighted average number of ordinary shares
reliably. Expenses are measured at historical cost outstanding during the year.
3.22. Leases

3.20. Taxes
(i) Current tax The Bank applied IFRS 16 to both the current and
comparative periods.
Tax is charged on the basis of the higher of 1% of gross
income and 27% of tax adjusted accounting profits in 3.22.1. Bank as a lessee
accordance with sections 79 (3a,b) and first schedule of
the Income and VAT Act 2012. For the year of Leases that do not transfer to the Bank substantially all of
assessment 2021, tax has been provided on the basis of the risks and benefits incidental to ownership of the
27% of adjusted profits. Current income tax relating to leased items are operating leases. Operating lease
items recognized directly in other comprehensive income payments are recognized as an expense in the income
is recognized in other comprehensive income respectively statement on a straight-line basis over the lease term.
and not in the statement of profit or loss. Contingent rental payable is recognized as an expense in
the year in which they it is incurred.
(ii) Deferred tax
3.22.2. Bank as a lessor
Deferred income tax is provided in full, using the liability
method, on all temporary differences arising between the
tax bases of assets and liabilities and their carrying values Leases where the Bank does not transfer substantially all
for financial reporting purposes. Deferred income tax is of the risk and benefits of ownership of the asset are
determined using tax rates enacted or substantively classified as operating leases. Rental income is recorded
enacted at the reporting date and are expected to apply as earned based on the contractual terms of the lease in
when the related deferred income tax liability is settled. other operating income. Initial direct costs incurred in
negotiating operating leases are added to the carrying
amount of the leased asset and recognized over the lease
Deferred income tax assets are recognised on unused tax term on the same basis as rental income. Contingent
losses, unused tax credits and deductible temporary rents are recognized as revenue in the year in which they
differences only to the extent that it is probable that future
are earned.

Annual Report 2021

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