Page 184 - CJ 2019 INTEGRATED REPORT

182
NOTES TO THE FINANCIAL
STATEMENTS 31 DECEMBER 2019 (CONTINUED)
1 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Borrowings
Borrowings
Borrowings
are are recognised initially at at at fair value value net net of of transaction transaction costs costs incurred Borrowings
Borrowings
are are subsequently stated at at at amortised cost cost cost any difference between the the the the the proceeds (net of of o of transaction transaction costs) and the the the the the redemption value value is is is is recognised in in in in profit or or or loss over the the the the the period of o of the the the the the borrowings using the the the the the effective interest method Fees paid on on the the the the the the establishment of of of loan loan facilities are recognised as as transaction costs of of of the the the the the the loan loan to the the the the the the extent that that it it it is is is is is probable that that some or all of of of the the the the the the facility will be drawn down down In this case the the the the the the fee is is is is is deferred until the the the the the the draw-down occurs To the the the the the the extent there is is is is is no evidence that that it it it it it it is is is is is probable that that some or or or all of of the the the the the the facility facility will be drawn down the the the the the the fee is is is is is capitalised as a a a a a a a a a a a a a a a pre-payment for liquidity services and amortised over the the the the the the period of of the the the the the the facility facility to which it it it it it it relates Borrowings
are classified as as as as current liabilities unless the the the the Group has an unconditional right to defer settlement of of the the the the liability for at least 12 months after the the the end of the the the reporting period Current and deferred income tax
The tax
tax
expense for the the the the period comprises current and deferred income income tax
tax
Tax is is is is is recognised recognised in in in in in profit or or or loss except to to the the the the the extent that fit it it it it relates to to items recognised recognised recognised in in in in in in in in in other other comprehensive comprehensive income income income income or or or or directly directly in in in in in in in in in equity equity In this case the the the the the tax
tax
tax
is is is is is is also recognised recognised in in in in in in in in in other other comprehensive comprehensive income income income or or or or directly directly in in in in in in in in in equity equity The current income income income tax
tax
tax
charge is is is is is is calculated on the the the the the the the basis of of the the the the the the the tax
tax
tax
tax
laws enacted enacted or or or or substantively enacted enacted at at at at at at the the the the the the the end of of the the the the the the the reporting period period in in in in in in in the the the the the the the countries where the the the the the the Company’s subsidiaries and and associates operate and and generate taxable income The directors periodically evaluate positions taken in in in in tax
tax
tax
tax
returns with respect to to to to to situations in in in in which applicable tax
tax
tax
tax
regulations is is is is subject to to to to to interpretation It establishes provisions where appropriate on on on on on the the basis of amounts expected to to to to be paid to to to to the the tax
tax
tax
authorities Deferred income tax
tax
tax
is is provided in in in in in in fin full using the the the the liability method on all temporary differences arising between the the the the tax
tax
tax
bases of of assets and and liabilities liabilities and and their carrying amounts in in in in in in fin in in the the the the the the financial statements However deferred deferred tax
tax
tax
tax
liabilities liabilities are not not recognised if if they arise arise from from the the the the the the initial initial recognition recognition of of of goodwill deferred deferred income tax
tax
is is is is not not accounted for if if it it it it it it it it arises from from initial initial recognition recognition of of of o an an an an asset or or or or liability in in in 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 transaction transaction other than 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 business combination that at at at the the the the the the time of of o of the the the the the the transaction transaction affects neither accounting nor taxable profit or or or or or loss Deferred income tax
tax
tax
is is determined using tax
tax
tax
rates (and laws) that have been enacted enacted or or or or or substantively enacted enacted by the the the the the the end of o of the the the the the the reporting period and and are expected to apply when the the the the related deferred deferred income income tax
tax
asset is is is realised or or or the the the the deferred deferred income income tax
tax
liability is is is settled Deferred income tax
tax
assets are recognised to the the extent that that it fit is is is probable that that future taxable profit will be be available against which the the temporary differences can be utilised Deferred income income tax
tax
is is is provided on on on temporary temporary differences arising on on on investments in in in in in in subsidiaries and associates except for for deferred income income tax
tax
liability where the the the the the the timing of of the the the the the the reversal of of the the the the the the temporary temporary temporary difference difference difference is is is is controlled by the the the the the the group and it it is probable that the the the the the temporary temporary difference difference will not reverse in in in the the the the the foreseeable future Deferred income income income tax
tax
tax
tax
tax
assets assets assets and and and liabilities liabilities liabilities are offset offset when when there is a a a a a a a a a a a a a a a a a a a a a legally enforceable right to to offset offset current current tax
tax
tax
tax
tax
assets assets assets against current current tax
tax
tax
tax
tax
tax
tax
liabilities liabilities liabilities and and and when when deferred income income income tax
tax
tax
tax
tax
tax
tax
assets assets assets and and and liabilities liabilities liabilities relate to to income income income taxes levied by the the the same same taxation authority on on the same same taxable entity Provisions
Provisions
are recognised when: the the the Group has has a a a a a a a a a a a a a a a a present legal or constructive obligation obligation as as as as a a a a a a a a a a a a a a a a result of of past events it is is is is is probable that an an an outflow of of resources will be be required to settle the the the obligation obligation and and the the the amount has has been reliably estimated Restructuring provisions comprise lease termination termination penalties and and employee termination termination payments Provisions
are not recognised for future operating losses Where there are a a a a a a a a a a a number of of of similar obligations obligations the the the the likelihood likelihood that an an outflow will be be required in in in settlement is is is is determined by considering the the the the the class class of of of of obligations obligations obligations as as as a a a a a a a a a a a a a a a a a whole A provision is is is is recognised even if the the the the the likelihood likelihood of of of of an an an outflow with respect to any one item included in in in in the the same class class of of obligations obligations may be small Provisions
are measured at at at at the the the the the the present value value of of of the the the the the the expenditures expected to to to be required to to to settle the the the the the the obligation using a a a a a a a a a a a a a a a a a a pre-tax rate that reflects current market assessments of of of of the the the the the the the time time value value of of of of money and the the the the the the the risks specific to to to to the the the the the the the obligation The increase in in in in the the the provision due to passage of of of time time is is is recognised as as as as interest expense CURRIMJEE JEEWANJEE AND COMPANY LIMITED