ANNUAL REPORT
2016
.61
NOTES TO THE
FINANCIAL STATEMENTS
1.
GENERAL (CONT¡¯D)
Basis of presentation
The consolidated financial statements include the financial statements made up to the end of the reporting year
of the company and all of its subsidiaries. The consolidated financial statements are the financial statements of
the group in which the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries
are presented as those of a single economic entity and are prepared using uniform accounting policies for like
transactions and other events in similar circumstances. All significant intragroup balances and transactions, including
income, expenses and cash flows are eliminated on consolidation. Subsidiaries are consolidated from the date the
reporting entity obtains control of the investee and cease when the reporting entity loses control of the investee.
Control exists when the group has the power to govern the financial and operating policies so as to gain benefits
from its activities.
Changes in the group¡¯s ownership interest in a subsidiary that do not result in the loss of control are accounted
for within equity as transactions with owners in their capacity as owners. The carrying amounts of the group¡¯s and
non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. When the
group loses control of a subsidiary it derecognises the assets and liabilities and related equity components of the
former subsidiary. Any gain or loss is recognised in profit or loss. Any investment retained in the former subsidiary is
measured at fair value at the date when control is lost and is subsequently accounted as available-for-sale financial
assets in accordance with FRS 39.
The company¡¯s separate financial statements have been prepared on the same basis, and as permitted by the
Companies Act, Chapter 50, the company¡¯s separate statement of comprehensive income is not presented.
2.
SIGNIFICANT ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION
2A.
Significant accounting policies
Revenue Recognition
The revenue amount is the fair value of the consideration received or receivable from the gross inflow of economic
benefits during the reporting year arising from the course of the activities of the entity and it is shown net of any
related sales taxes and rebates. Revenue from the sale of goods is recognised when significant risks and rewards of
ownership are transferred to the buyer, there is neither continuing managerial involvement to the degree usually
associated with ownership nor effective control over the goods sold, and the amount of revenue and the costs
incurred or to be incurred in respect of the transaction can be measured reliably. Revenue
from rendering of services
that are not significant transactions is recognised as the services are provided or when the significant acts have been
completed.
Rental revenue is recognised on a time-proportion basis that takes into account the effective yield on the asset on a
straight-line basis over the lease term. Interest is recognised using the effective interest method.
