77
ANNUAL REPORT 2015/2016
Notes to Financial Statements
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(xx)
Provisions
A liability of provision is recognised when the Group has a present obligation (legal or constructive)
as a result of a past event, it is probable that an outflow of resources embodying economic benefits
XJMM CF SFRVJSFE UP TFUUMF UIF PCMJHBUJPO BOE B SFMJBCMF FTUJNBUF DBO CF NBEF PG UIF BNPVOU PG UIF
PCMJHBUJPO 1SPWJTJPOT BSF NBEF VTJOH CFTU FTUJNBUFT PG UIF BNPVOU SFRVJSFE JO TFUUMFNFOU BOE XIFSF
the effect of the time value of money is material, the amount recognised is the present value of the
FYQFOEJUVSF FYQFDUFE UP CF SFRVJSFE UP TFUUMF UIF PCMJHBUJPO VTJOH B QSF UBY SBUF UIBU SFGMFDUT DVSSFOU
market assessments of the time value of money and the risks specific to the obligation. The increase in
provision due to passage of time is recognised as interest expense. Changes in estimates are reflected
in profit or loss in the period they occur.
(xxi)
Operating segments
An operating segment is a component of the Group that engages in business activities from which it
may earn revenue and incur expenses, including revenue and expenses that relate to transactions with
BOZ PG UIF (SPVQōT PUIFS DPNQPOFOUT 0QFSBUJOH TFHNFOUT BSF SFQPSUFE JO B NBOOFS DPOTJTUFOU XJUI
the internal reporting provided to the chief operating decision maker. The chief operating decision
maker has been identified as the executive directors and key executives that make strategic resources
allocation decisions.
A geographical segment is a distinguishable component that is engaged in providing products or
services within a particular economic environment and that is subject to risks and returns that are
different from those of components operating in other economic environments.
(xxii) Leases
1BZNFOUT NBEF VOEFS PQFSBUJOH MFBTFT BSF SFDPHOJTFE JO QSPGJU PS MPTT PO B TUSBJHIU MJOF CBTJT PWFS
the term of the lease. Lease incentives received are recognised as an integral part of the total lease
expense, over the term of the lease.
Minimum lease payments made under finance leases are apportioned between the finance expense
and the reduction of the outstanding liability. The finance expense is allocated to each period during the
lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Contingent lease payments are accounted for by revising the minimum lease payments over the
remaining term of the lease when the lease adjustment is confirmed.
