<< < > >>
| Full PDF report | Print this page |
Notes to the Financial Statements
<< < > >>
24 Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the income statement, except where they relate to items that are charged or credited directly to equity in which case the related deferred tax is also charged or credited directly to equity. 1.16 Segment reporting A segment is a distinguishable component of the Group that is engaged either in providing products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from those of other segments. 1.17 Financial instruments Financial assets are all classed as loans and receivables. The Group’s financial assets comprise trade and other receivables and cash and cash equivalents which are classified as loans and receivables. The Group’s financial liabilities comprise trade and other payables and bank borrowings. 1.17.1 Non-derivative financial instruments Non-derivative financial instruments comprise trade and other receivables, cash and cash equivalents, loans and borrowings, and trade and other payables. Non derivative financial instruments are recognised initially at fair value, plus, for instruments not at fair value through profit or loss, any directly attributable transaction costs. Subsequent to initial recognition non-derivative financial instruments are measured at amortised cost using the effective interest method. Provision for impairment are made against financial assets if considered appropriate, and any impairment is recognised in profit or loss. 1.17.2 Cash and cash equivalents Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the Group’s cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows. Accounting for financial income and financial expense is discussed in notes 1.14 and 1.12.2 respectively. 1.18 Equity Equity comprises the following: “Share capital” represents the nominal value of equity shares. “Share premium” represents the excess over nominal value of the fair value of consideration received for equity shares, net of expenses of the share issue. “Retained earnings” represents retained profits.