Page 61 - Stellar IAR2015

1.11. Short-term employee bene tsThe cost of short-term employee bene ts, (those expected to be settled within 12 months after the service is rendered, such as vacation leave and bonuses), are recognised in the period in which the service is rendered and are not discounted.The expected cost of compensated absences is recognised as an expense as the employees render services increase their entitlement or, in the case of non-accumulating absences, when the absence occurs.The expected cost of pro t sharing and bonus payments is recognised as an expense when there is a legal or constructive obligation to make such payments as a result of past performance.1.12. Non-current assets or disposal Group held for saleA non-current asset or disposal Group (a business grouping of assets and their related liabilities) is designated as held-for-sale when its carrying amount will be recovered principally through a sale transaction rather than through continuing use. A non-current asset or disposal group is stated at the lower of carrying value and fair value less cost to sell.The classi cation as held-for-sale of a non-current asset or disposal group occurs when it is available for immediate sale in its present condition and the sale is highly probable. A sale is considered highly probable if:• management is committed to a plan to sell the non-current asset or disposal group;• an active divestiture programme has been initiated;• the non-current assets or disposal group is marketed at a price reasonable to its fair value; and • the disposal is expected to be completed within one year from classi cation.Upon classi cation of a non-current asset or disposal group as held-for-sale, it is reviewed for impairment. The impairment charged to the income statement is the excess of the carrying value of the non-current asset or disposal group over the expected net selling price (fair value less costs to sell). At each subsequent reporting date, the carrying values are reassessed for possible impairment. A reversal of impairment is recognised for any subsequent increase in net selling price, but not in excess of the cumulative impairment loss already recognised.The Group ceases the depreciation and amortisation of non-current assets from the date on which these are classi ed as held-for-sale.When a disposal group is classi ed as held-for-sale it is also necessary to assess whether or not the criteria for discontinued operations are met. A discontinued operation is a component of an entity that either has been disposed of or is classi ed as held for sale, and:• represents either a separate major line of business or a geographical area of operations; and• is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations; or• is a subsidiary acquired exclusively with a view to resale and the disposal involves loss of control.If the criteria are met, the results of the disposal group are classi ed as discontinued operations in the statement of comprehensive income and the comparative amounts restated for all periods presented. No restatement of statement of nancial position comparative amounts is done.The elimination journals in respect of transactions between continuing and discontinued operations are accounted for in each case based on whether the transactions are expected to continue in the future or not. Where transactions are expected to continue in the future, the eliminations are accounted for in continuing operations and where the transactions are not expected to continue in the future, the elimination journals are accounted for in discontinued operations. Taxation e ects of elimination journals are accounted for in the legal entities to which they relate and the resultant di erences are included in the tax rate reconciliation as the impact of discontinued operations on the taxation charge of continuing operations.1.13. Signi cant judgements and sources of estimation uncertaintyIn preparing the nancial statements, management is required to make estimates and assumptions that a ect the amounts represent- ed in the nancial statements and related disclosures. Use of available information and the application of judgement is inherent in the formation of estimates. Actual results in the future could di er from these estimates.STELLAR CAPITAL PARTNERS | 57