NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
Trade and other payables
These amounts represent liabilities for goods and services provided to the Group/Company prior to the end of financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method.
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred. Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remea- sured if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of-use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.
The property, plant and equipment acquiredunder finance leasing contracts are depreciated over the useful life of the asset. Similarly, right-of-use assets also acquired under property lease are amortised over the useful life of the assets.
Retirement Benefit Obligation
The liability for employee benefits expected to be settledmore than 12months from the reporting date are recognised and mesasuredat thepresent value of the estimated future cashflows tobemade in respect of all employees at the reportingdate. The valuation of plan assets and the present value of the defined contribution obligations were carried out at 31 December 2020 by QED Actuaries & Consultants.
Revenue recognition
Revenue corresponds to the value of goods and services sold by the Company in the ordinary course of business. The Company recognises revenue when it transfers the control of the promised goods and services to the customer, whichmay be over time or a point in time. Revenue is recognised in an amount that reflects the consideration to which the Company is expected to be entitled in exchange for transferring promised goods and services. The Company applies the guidance provided in IFRS 15 to determine whether it acts as the principal or an agent in its contractual relationships with customers. It is considered as acting as the principal if it controls the promised service before that service is transferred to a customer. In such cases, revenues and related expenses are reported separately in the statement of profit or loss. Otherwise, the Company is considered as acting as an agent and only the remuneration corresponding to the agency fee is recognised in revenue. Other income relate to services representing distinct performance obligations which are generally satisfied over time, when the clients simultaneously receive and consume the benefits provided. The Company elects the practical expedient to recognise revenue based on amounts invoiced to the customer, when this method of measuring progress best depicts the performance provided. Invoicing is based on contractual prices, which represent the stand alone selling prices of specified promised goods or services, variable considerations depending on the occurrence of uncertain future events are estimated using the most likely amount method, based on all reasonably available information, and are, if need be, capped at the minimum amount considered as highly probable. At each reporting period, the Company revises its estimates of variable considerations and assesses whether a constraint should apply.
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