Page 186 - CJ 2019 INTEGRATED REPORT

184 NOTES TO THE FINANCIAL
STATEMENTS 31 DECEMBER 2019 (CONTINUED)
1 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Employee benefits (continued)
(a) Other post-employment obligations
Some group companies provide post-retirement healthcare and other benefits benefits apart from pensions to to to their retirees The The entitlement to to to these these benefits benefits benefits is usually conditional on on on on on the the the the the the the employee remaining in in in in service service up up to to to retirement retirement age and the the the the the the completion of of of a a a a a a a a a a a a a a a minimum service service period period The The expected costs of of of these these benefits benefits are accrued over the the the the the the period period of of of employment using the the the the same accounting methodology as as used for defined benefit benefit pension plans Actuarial gains and and losses arising from experience adjustments and and changes in in fin in in in in in in in actuarial assumptions are are charged or or credited to other comprehensive income in in in in in in the the the period in in in in in in which they arise These obligations
are are valued annually by independent qualified actuaries (b) Termination benefits Termination benefits benefits are payable when when employment is is terminated by a a a a a a a a a a a a a group entity before the the normal retirement date date or or or or whenever an an an an employee accepts voluntary redundancy in in in in in exchange for for these benefits benefits benefits The Group Group recognises termination benefits benefits benefits at at at at at the the the the the the the earlier of o of of the the the the the the the following dates: (a) when when when the the the the the the the Group Group can no longer withdraw the the the the the the the offer of o of of those benefits benefits benefits and and (b) when when the the the the the the the the the entity recognises costs for a a a a a a a a a a a a a a a a a a a a restructuring that is is within the the the the the the the the the scope of o of of of of o IAS 37 and and involves the the the the the the the payment of of of o of o termination termination benefits benefits benefits In the the the the the the the case of of of o of o an an an an an offer offer made to to encourage voluntary redundancy the the the the the the the termination termination benefits benefits are are measured based on on on on the the the the the the the the number of of o of o of employees expected to to to accept the the the the the the the the offer offer Benefits falling due more than 12 months after the the the the the end of o of the the the the the reporting period are are discounted to to their present value (c) Profit-sharing and bonus plans The The Group Group recognises recognises a a a a a a a a a a a a a a a a a a a liability and and an an an an expense for for bonuses and and profit-sharing based on on on on a a a a a a a a a a a a a a a a a a a formula that takes into consideration the the the profit profit attributable to to the the the company’s shareholders after certain adjustments The The Group Group recognises recognises a a a a a a a a a a a a a a a a a a a provision where where contractually obliged or where where there is is is a a a a a a a a a a a a a a a a a a a past practice that has created a a a a a a a a a a a a a a a a a a a constructive obligation Leases
Until the the the 2018 financial year leases leases leases leases of of property plant and and equipment were classified as as as as as as as as either finance leases leases leases leases or or operating leases leases leases leases From 1 1 1 January 2019 leases leases leases leases are recognised as as as as as as as as as as 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 right-of-use asset asset and and 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 corresponding liability at at at at the the the the the date at at at at which the the leased asset is is available for use by the the group Until 31 December 2018 leases leases leases of of property plant and and equipment where the the the group as as as as as as as lessee had substantially all all the the the the the the the risks and and rewards of of of of ownership were were classified as as as as as as as as as finance leases leases leases Finance leases leases leases were were capitalised at at the the the the the the the lease’s inception at at at the the the the the the the fair value value of of of of the the the the the the the leased property or or or i if lower the the the the the the the present value value of of of of the the the the the the the minimum lease lease lease lease lease payments The corresponding rental obligations
net of of of o finance finance finance charges were included in in in fin in in fin fin other short-term and and long-term payables Each lease lease payment was was allocated between the the the the the liability liability and and finance finance finance cost cost The finance finance finance cost cost was was charged to to profit or or or or loss over over the the the the the lease lease lease period period period so as as as as as as as as to to produce 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 constant periodic rate o of of interest on on the the the the the remaining balance o of of the the the the the liability liability for each period period period The property plant and and equipment acquired under finance leases was depreciated over over over the the the the the the the the the asset’s asset’s useful useful life life or or over over the the the the the the the the shorter of of the the the the the the the the asset’s asset’s useful useful life life and and the the the the the the the the lease lease lease term term if if if there is no reasonable certainty that the the the the the the the the group will obtain ownership at the the the the end of of the the the the lease term Leases
in in in in in which a a a a a a a a a a a a a a a a a a a significant portion of of of the the the risks and rewards of of of ownership are are are retained by the the the lessor lessor are are are classified as as as as as operating operating leases leases Payments made under operating operating leases leases (net of of of o of any incentives received from the the the the the lessor) are are are charged to profit or loss on a a a a a a a a a a a straight-line basis over the the period of o of the the lease lease lease Lease income income from operating operating leases where the the the the group is is is is a a a a a a a a a a a a a a a a a lessor is is is is recognised in in in in in in in in in in in income income on a a a a a a a a a a a a a a a a a straight-line basis over the the the the the the lease lease lease lease lease term term Initial direct costs incurred in in in in in in in in in in in in in obtaining an an operating operating lease lease lease lease lease are added to the the the the the the carrying amount of the the the the the the underlying asset asset and recognised as as as as as as as as as as as expense over the the the the the the the lease lease lease lease lease term term on on the the the the the the the same basis as as as as as as as as as as as lease lease lease lease lease income The The respective leased assets assets are included in in in in in in in the the the the the the balance sheet based on on their nature The The group did not need to to make any adjustments to the the the the accounting for assets assets held as as as as as as as lessor as as as as as as as a a a a a a a a a a a a a a a a result of adopting the the the the new leasing standard Revenue from contract with customers recognition
Revenue Revenue from contract with customers is is is recognised to to to the the the extent that that it it fit it is is is probable that that the the the economic benefits will flow to to to to the the the the the the Group and and and revenue can can be be be reliably measured The following specific criterias must also be be be met Revenue Revenue is is is is recognised when the the the the significant risks and and and and rewards of of of of ownership of of of of the the the the goods have passed to to to the the the the buyer and and and and upon customer acceptance i if any or or performance of of of of services net of of of of value value added taxes and and and discounts The Group’s turnover reflects the invoiced value derived from operations CURRIMJEE JEEWANJEE AND COMPANY LIMITED