Page 187 - CJ 2019 INTEGRATED REPORT

185
NOTES TO THE FINANCIAL
STATEMENTS 31 DECEMBER 2019 (CONTINUED)
1 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Revenue from contracts with customers recognition
(Continued)
Revenues from pre-paid phone cards are recognised based on on actual usage by the customers Other revenues earned by the the the Group are recognised on the the the following bases:
(i) Dividend income is is is is recognised when the shareholder’s right to receive payment is is is is established (ii) Interest Interest income income is is is recognised using the effective interest method Interest Interest income income includes accrued discount on Treasury Bills (iii) Commitment fee is is recognised at at the the the time of of the the the signature of of the the the lease agreement (iv) Rental income from operating leases is is is is is recognised recognised on on a a a a a a a a a a a a straight-line straight-line basis basis over over the the the the lease lease lease term term When the the the the Group provides incentives incentives to to its customers the the the the cost of of incentives incentives are recognised recognised over over the the the the lease lease lease term term on on on a a a a a a a a a a a a a a a straight-line straight-line basis basis as a a a reduction of rental income Life assurance fund
At the the the the the the the end of of of of every year year the the the the the the the amount of of of of the the the the the the the liabilities of of of of the the the the the the the life assurance fund
fund
is is is is established Effective from the the the the the the the year year 2004 the the the the the the the the the adequacy of of of of the the the the the the the the the fund
fund
is is is is is is determined annually by by actuarial actuarial actuarial valuation valuation Under current legislation an an an an an an annual annual annual actuarial actuarial actuarial actuarial reporting is is is is required by by Financial Services Commission Based on on on on on on on the the the the the the annual annual annual actuarial actuarial actuarial actuarial valuation valuation the the the the the the actuary recommends the the the the bonus declaration and the the the the amount of o actuarial actuarial actuarial surplus that can be transferred from profit or or loss Dividend distribution
Dividend distribution
to the the the the Group’s Group’s Group’s shareholders shareholders is is is recognised as a a a a a a a a a a liability in fin in in the the the the Group’s Group’s Group’s financial statements in fin in in the the the the period in which dividends are are are approved by the the Group’s Group’s shareholders shareholders 2 FINANCIAL
RISK MANAGEMENT
The The Group’s Group’s activities expose it it it it to a a a a a a a a a a a a a a a a variety of financial financial risks: market risk risk risk risk risk risk risk risk (including foreign exchange risk risk risk risk risk risk risk risk price risk risk risk risk risk risk risk risk and and and interest rate risk) credit risk risk risk risk risk risk risk risk and and and liquidity risk risk risk risk risk risk risk risk The The Group’s Group’s overall financial financial financial financial risk risk risk risk risk risk risk risk management programme focuses on on the the the unpredictability of of financial financial financial markets and and and seeks to minimise potential adverse effects on on the the the financial financial financial performance of the the Group Risk management is is carried out under policies approved by the Board of directors (a) Market risk • Foreign exchange risk The Group operates internationally and and is is is exposed to to foreign exchange exchange risk arising from various currency exposures primarily with respect to to the United States dollar (“USD”) Euro (“EUR”) and and and and Indian rupee (“INR”) Foreign exchange exchange risk arises from future commercial transactions recognised assets and and and liabilities and and and net investments in in foreign operations INTEGRATED REPORT 2019