Page 172 - CJ 2019 INTEGRATED REPORT

170 NOTES TO THE FINANCIAL
STATEMENTS 31 DECEMBER 2019 (CONTINUED)
1 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(a) Critical accounting estimates and assumptions (Continued)
• Fair value of financial instruments
For financial financial instruments
instruments
traded fin in in in fin in in active markets the determination of of fair values of of financial financial assets is is is based on on on quoted quoted quoted market market market prices prices This includes listed equity securities and quoted quoted quoted debt instruments
instruments
on on on major stock exchanges The quoted quoted quoted market market price price price used for financial assets held by the the Company is is is the the current bid prices prices If the the the the market for for a a a a a a a a a a a a a a a a a financial asset is is is not active (and for for unlisted securities) the the the the Company establishes fair value by using valuation techniques These include the the the the the use use of of recent arm’s length transactions reference to other instruments
that are substantially the the the same discounted cash flow analysis analysis and and option pricing models making maximum use use of of market inputs inputs and and relying as as as little as as as possible on on on entity-specific inputs inputs The sensitivity analysis analysis is is is is set out on on on Note 2 The carrying value value of trade trade receivables and trade trade payables are assumed to approximate their fair values (a) Critical judgements in in in applying the entity’s accounting policies
In preparing the the the the the the financial statements the the the the the the directors in fin in in in in in the the the the the the process of applying the the the the the the Group’s accounting policies
did not make any judgement other than those involving estimates that could have a a a a a a a a a a a a a a a a a a significant effect on the the the the the the the amounts recognised in fin the the financial statements Changes in in accounting policy and disclosures
(a) New and and and amended standards adopted by the the Group and and and the the Company The Group and and and Company have applied the the the following standards and and and amendments for for the the the first time for for their annual reporting period commencing 01 01 January 2019:
IFRS 16 Leases
The Group has adopted “IFRS 16 - Leases” using the the the the the modified retrospective approach approach Under this approach approach the the the the the lessee does not restate comparative information Consequently the the the the the the the the date of of of initial application is is the the the the the the the the first first day of of of the the the the the the the the annual reporting period in in in in which the the the the the lessee first applies the the the the the requirements of of the the the the the new leases standard On adoption of of IFRS 16 the the the the Group has recognised its lease lease lease liability liability in in in relation to the the the the lease lease lease which had previously been classified as as as as as as as as as as as ‘operating lease’ under the the the the the the principles of of of of “IAS 17 – Leases” This liability liability was measured at at at at the the the the the the present value of of of the the the the the remaining lease lease lease payments discounted using the the the the the lessee’s lessee’s incremental incremental borrowing borrowing rate rate as as as as as as as as as of of of 01 01 January 2019 The lessee’s lessee’s incremental incremental borrowing borrowing rate applied to the the the lease lease liability range is is 5 5 5 5% 5% - 7 7 75% Measurement of of right-of-use asset The right-of-use asset was measured at at at at at the the the the amount amount equal to to the the the the lease lease lease liability adjusted by the the the the amount amount of of of any prepaid or accrued lease lease lease lease payments relating to to that lease lease lease lease recognised in in fin in the the the the the the statement of of of of financial position as as as as as as as as as as at at at at at at at at 31 December 2019 The The depreciation rate on on on on on on on on ROU assets is is is is computed on on on on on on on on straight line basis over the the the the the duration of of the the the the the lease lease lease lease lease The The lease lease lease lease lease lease terms may include options to extend or terminate the the the the the lease lease lease lease lease lease when it is is is is reasonably certain that the the the the the option option will be exercised In instances instances where where lease lease lease lease lease lease lease agreement contain lease lease lease lease lease lease lease and non-lease non-lease components they are generally accounted for for separately For certain instances instances where where it is is impractical to separate separate the the the the the lease lease lease lease lease lease from the the the the the non-lease non-lease component component component the the the the the Group has accounted for for them as as as a a a a a a a a a a a single lease component IFRIC 23 ‘Uncertainty over income tax treatments’
This IFRIC IFRIC clarifies how the the recognition and measurement requirements of IAS IAS IAS 12 12 ‘Income taxes’ are applied where there is is is uncertainty over income income tax tax tax treatments treatments The IFRIC IFRIC IFRIC had clarified previously that IAS IAS IAS 12 12 not IAS IAS IAS 37 ‘Provisions contingent contingent liabilities liabilities and and and and contingent contingent assets’ applies to to accounting for uncertain uncertain uncertain income income income tax tax tax treatments treatments IFRIC IFRIC 23 explains how to to recognize and and and and measure deferred and and and and current income income tax tax tax tax tax assets assets and and and and liabilities liabilities where where there there is is is uncertainty uncertainty over over a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a tax tax tax tax tax treatment treatment treatment treatment An uncertain uncertain uncertain tax tax tax tax tax treatment treatment treatment treatment is is is is any tax tax tax tax tax treatment treatment treatment treatment applied by by an an an an an entity where where there there is is is is uncertainty uncertainty over over whether that treatment treatment treatment treatment treatment will be accepted by by the the the tax tax tax tax tax tax authority For example a a a a a a a a a a a a a a a a a a a a a a a a a a a a a decision to to claim a a a a a a a a a a a a a a a a a a a a a a a a a a a a a deduction for a a a a a a a a a a a a a a a a a a a a a a a a a a a a specific specific expense or or or or not to to to include a a a a a a a a a a a a a a a a a a a a a a a a a a a a specific specific item of of income income in in in in in in in a a a a a a a a a a a a a a a a a a a a a a a a a a a a tax tax tax tax tax return is is is is an an uncertain uncertain tax tax tax tax tax treatment treatment i i if its acceptability is is is uncertain uncertain uncertain under tax tax tax tax tax tax law IFRIC 23 applies to to all aspects of of of o of income income tax tax tax tax tax tax accounting where there is is is an an an an uncertainty regarding the the the treatment of of o of an an an an an item including taxable profit or loss loss the the the tax tax tax tax tax tax bases of of o of assets and and and liabilities tax tax losses and and credits and and tax tax rates The adoption of this amendment does not have any significant impact on on the financial statements CURRIMJEE JEEWANJEE AND COMPANY LIMITED