Financial assets measured at amortised cost The Company considers evidence of

Financial assets measured at amortised cost the

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Financial assets measured at amortised cost The Company considers evidence of impairment for financial assets measured at amortised cost at both a specific asset and collective level. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Available-for-sale financial assets Impairment losses on available-for-sale financial assets are recognised by reclassifying the losses accumulated in the fair value reserve in equity to profit or loss. The cumulative loss that is reclassified from equity to profit or loss is the difference between the acquisition cost, net of any principle repayment and amortisation, and the current fair value, less any impairment loss 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 income State of Changes in Equity Statement of Cash Flows Notes to the Financial Statements Form of Proxy Notes to the financial statements (continued) 73 Non-financial assets The carrying amounts of the Company's non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists then the recoverable amount of the asset is estimated. An impairment loss is recognised if the carrying amount of an asset or its related cash-generating unit (CGU) exceeds its estimated recoverable amount. (f) Share capital Paid up capital represents total amount contributed by the shareholders and bonus shares issued by the Company to the ordinary shareholders. Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to vote at shareholders' meetings. In the event of a winding up of the Company, ordinary shareholders rank after all other shareholders and creditors and are fully entitled to any residual proceeds of liquidation. (g) Employee benefits The Company maintains both defined contribution plan and defined benefit plan for its eligible permanent employees. The eligibility is determined according to the terms and conditions set forth in the respective deeds. Defined contribution plan A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and has no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution plans are recognised as an employee benefit expense in profit or loss in the periods during which related services are rendered by employees. The Company maintains three contributory provident funds for its permanent employees categorised as managers, officers and supervisors and workers. The Company also maintains a managerial staff pension fund which was a defined benefit as contribution plan. These are administered by the Boards of Trustees.

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