Financial assets measured at amortised costThe Company considers evidence of impairment for financial assets measured at amortised cost at both a specific asset andcollective level. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the differencebetween its carrying amount and the present value of the estimated future cash flows discounted at the asset’s originaleffective interest rate.Available-for-sale financial assetsImpairment losses on available-for-sale financial assets are recognised by reclassifying the losses accumulated in the fairvalue reserve in equity to profit or loss. The cumulative loss that is reclassified from equity to profit or loss is the differencebetween the acquisition cost, net of any principle repayment and amortisation, and the current fair value, less any impairmentloss recognised previously in profit or loss.Bata report 2016.qxp:Layout 1 6/4/17 2:41 PM Page 74
Statement of profit or loss and Other Comprehensive incomeState of Changes in EquityStatement of Cash FlowsNotes to the Financial StatementsForm of ProxyNotes to the financial statements (continued)73Non-financial assetsThe carrying amounts of the Company's non-financial assets, other than inventories and deferred tax assets, are reviewedat each reporting date to determine whether there is any indication of impairment. If any such indication exists then therecoverable amount of the asset is estimated. An impairment loss is recognised if the carrying amount of an asset or itsrelated cash-generating unit (CGU) exceeds its estimated recoverable amount.(f)Share capitalPaid up capital represents total amount contributed by the shareholders and bonus shares issued by the Company to theordinary shareholders. Holders of ordinary shares are entitled to receive dividends as declared from time to time and areentitled to vote at shareholders' meetings. In the event of a winding up of the Company, ordinary shareholders rank after allother shareholders and creditors and are fully entitled to any residual proceeds of liquidation.(g)Employee benefitsThe Company maintains both defined contribution plan and defined benefit plan for its eligible permanent employees. Theeligibility is determined according to the terms and conditions set forth in the respective deeds.Defined contribution planA defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separateentity and has no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contributionplans are recognised as an employee benefit expense in profit or loss in the periods during which related services arerendered by employees.The Company maintains three contributory provident funds for its permanent employees categorised as managers, officersand supervisors and workers. The Company also maintains a managerial staff pension fund which was a defined benefit ascontribution plan. These are administered by the Boards of Trustees.