Page 183 - CJ 2019 INTEGRATED REPORT

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NOTES TO THE FINANCIAL
STATEMENTS 31 DECEMBER 2019 (CONTINUED)
1 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(a) Indefeasible Rights of Use (“IRU”)
Capacity purchased on on on on an Indefeasible rights of of of use (“IRU”)
basis basis is is is is is shown under non-current assets The IRU IRU IRU is is is is is amortised on on on on a a a a a a a a a a a a a a a a a a a straight-line basis basis over the the the contract period of of of 15 years years from the the the effective date of of of the the the IRU’s purchase purchase Remaining useful life is is is is approximately is is is is 9 years Impairment of non-financial assets Intangible assets that that have an an an an indefinite useful life for for for example goodwill are are are are not subject subject to to amortisation amortisation and are are are are tested annually for for for impairment impairment impairment Assets that that that are are are are subject subject to to amortisation amortisation are are are are reviewed for for for impairment impairment impairment whenever events or or or or or or changes in in in in circumstances indicate that that the the the the carrying carrying amount amount amount amount amount may not be recoverable recoverable recoverable An impairment impairment impairment loss is is is is recognised for the the the the the amount amount amount amount amount by which the the the the the asset’s asset’s carrying carrying amount amount amount amount amount exceeds its recoverable recoverable recoverable amount amount amount amount amount The recoverable recoverable recoverable amount amount amount amount amount is is is the the the the the higher of of an an asset’s asset’s fair value value less costs to sell and value value in in in in use For the the the the the the purposes of of assessing impairment assets are are are grouped at at at at at the the the the lowest levels for for which there are are are separately identifiable cash cash flows (cash-generating units) Prior impairment of non-financial assets (other than goodwill) are are are reviewed for for possible reversal at at at at at each reporting date Trade receivables Trade Trade receivables receivables are are are amounts due due from customers for for for goods and and and services sold in in in in the the the ordinary course of the the the business They are are are are generally due due for for for settlement within 30 and and and 90 days and and and therefore are are are are all all all classified as as current Trade Trade receivables receivables are are are are recognised recognised initially at at at at the the the the the the amount of consideration that is is is unconditional unless they they contain significant financing components when they they are are recognised recognised at at at at at fair value The Company holds the the the the the the the the the trade receivables with the the the the the the the the the objective to collect the the the the the the the contractual cash flows and therefore measures them subsequently at at amortised cost using the the the the the the the effective interest method The Group and Company apply the IFRS 9 simplified approach to measuring ECL which uses a a a a a a a a a a a lifetime expected loss allowance for trade receivables Trade receivables have been grouped based based on on on shared credit credit characteristics and and the the the the days past due The expected loss loss rates rates are are are based based on on on on the the the the payment profiles o of sales over the the the the last 3 years and and and the the the the corresponding historical historical credit credit losses experienced within this period The The historical historical loss loss rates rates are are adjusted to to to to to to reflect current and and forward-looking information on on on macro-economic factors factors affecting the the the the the ability of the the the the the customers to to to to to to to to settle the the the the the receivables The The Company has identified Gross Domestic Product (GDP) to to to to to to to be the the the the the the most relevant factors factors factors and accordingly adjusts the the the the the the historical loss rates based on expected changes in these factors Inventories
Inventories
are stated at at at the the the the lower of cost cost cost cost and and and net realisable value Cost is is determined using the the the the average cost cost cost cost (“AVCO”) method and and and and and includes all all costs incurred in in in in in in in in fin in bringing the the the the inventories to to to their present location and and and and and condition The cost cost cost cost of of finished goods and and and and work-in progress comprises purchase price price materials and and and and all all applicable applicable expenses It excludes borrowing costs Net realisable value is is is is the the estimated selling selling price price fin in in in in in in in the the ordinary course of of business less applicable applicable variable selling expenses Property held for resale
Non-current assets are are classified as as as held for sale sale sale when their carrying carrying amount amount is is to be recovered principally through a a a a a a a a a a a a a a a a a a a a a a a sale sale sale transaction and and sale sale sale is is considered highly probable They are are stated at at the the lower of carrying carrying amount amount and and fair value less costs to sell Cash and cash equivalents
In In the the the statement of of cash cash cash cash flows cash cash cash cash and and and cash cash cash cash equivalents
includes cash cash cash cash in in in in hand deposits held at at at call with with banks other short-term highly liquid investments with with with original maturities of of of three months or or or or less and and and bank bank bank overdrafts overdrafts In In the the the statement of of financial position bank bank overdrafts are shown within borrowings in in fin in in in current liabilities Share capital Ordinary shares are are classified as as equity Trade payables Trade payables are are obligations to pay pay pay pay for goods and services that have been acquired in in in in the ordinary course of business from suppliers Accounts payable payable payable are are are are classified as as as current current liabilities liabilities i if payment is is done within one one year or or or less If not they are are are presented as as as as non-current liabilities liabilities Trade payables are are are recognised initially at at fair value and subsequently measured at amortised cost using the the effective interest method INTEGRATED REPORT 2019