67
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
2.
Significant accounting policies
(continued)
2.25 Cash and cash equivalents
For the purpose of presentation in the consolidated statement of cash flows, cash and cash
equivalents include cash on hand, deposits with financial institutions which are subject to an
insignificant risk of change in value, net of bank overdrafts and short-term bank deposits pledged.
Bank overdrafts are presented as current borrowings on the balance sheet.
2.26 Share capital and treasury shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of
new equity instruments are deducted against the share capital account.
When any entity within the Group purchases the Company’s ordinary shares (“treasury shares”), the
carrying amount which includes the consideration paid and any directly attributable transaction cost
is presented as a component within equity attributable to the Company’s equity holders, until they
are cancelled, sold or reissued.
When treasury shares are subsequently cancelled, the cost of treasury shares are deducted against
the share capital account if the shares are purchased out of capital of the Company, or against the
retained profits of the Company if the shares are purchased out of earnings of the Company.
When treasury shares are subsequently sold or reissued, pursuant to an emploee share options
or performance shares scheme, the cost of treasury shares is reversed from the treasury share
account and the realised gain or loss on sale or reissue, net of any directly attributable incremental
transaction costs and related income tax, is recognised in the capital reserve.
2.27 Dividends to Company’s shareholders
Dividends to the Company’s shareholders are recognised when the dividends are approved for
payment.
3.
Critical accounting estimates, assumptions and judgements
Estimates, assumptions and judgements are continually evaluated and are based on historical
experience and other factors, including expectations of future events that are believed to be
reasonable under the circumstances.
(a)
Impairment test for goodwill
Goodwill is tested for impairment annually and whenever there is an indication that the
goodwill may be impaired. The recoverable amounts of cash-generating units, where goodwill
is allocated, have been determined based on value-in-use calculations. These calculations
require the use of estimates. The carrying amount of goodwill is disclosed in Note 19.
