Revenue Recognition
Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated
customer returns, rebates and similar allowances. Allowance for sales returns and liability for returns are recognized at the
time of sale based on the seller’s reliable estimate of future returns and based on past experience and other relevant factors.
a. Sale of goods
Revenue from the sale of goods is recognized when all the following conditions are satisfied:
1) The Corporation has transferred to the buyer the significant risks and rewards of ownership of the goods;
2) The Corporation retains neither continuing managerial involvement to the degree usually associated with ownership
nor effective control over the goods sold;
3) The amount of revenue can be measured reliably;
4) It is probable that the economic benefits associated with the transaction will flow to the Corporation; and
5) The costs incurred or to be incurred in respect of the transaction can be measured reliably.
Under the Corporation’s customer loyalty program, sales of goods that result in reward credits for customers, are
accounted for as multiple-element revenue transactions, and the fair value of the consideration received or receivable
is allocated both to the goods supplied and the reward credits granted. The portion of the consideration allocated to
the reward credits should be measured at fair value and recognized as income when the customer receives the award.
b. Dividend and interest income
Dividend income from investments is recognized when the shareholder’s right to receive payment has been established
and if it is probable that the economic benefits will flow to the Corporation and the income can be measured reliably.
Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the
Corporation and the amount of income can be measured reliably. Interest income is accrued on a time basis, by
reference to the principal outstanding and the effective interest rate applicable.
Leasing
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of
ownership to the lessee. All other leases are classified as operating leases.
a. The Corporation as lessor
Rental income from operating leases is recognized on a straight-line basis over the term of the lease. Contingent rents
arising under operating leases are recognized as income in the period in which they are received.
b. The Corporation as lessee
Operating lease payments are recognized as an expense on a straight-line basis over the lease term. Contingent rents
arising under operating leases are recognized as an expense in the period in which they are incurred.
Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are added to the cost
of these assets until such time as the assets are substantially ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for capitalization.
Other than stated above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.
Retirement Benefit Costs
Payments to defined contribution retirement plans are recognized as an expense when employees have rendered service
entitling them to the contributions.
For defined benefit retirement plans, the cost of providing benefits is determined using the projected unit credit method.
All actuarial gains and losses on the defined benefit obligation are recognized immediately in other comprehensive income.
Past service cost is recognized immediately to the extent that the benefits are already vested, and otherwise is amortized on
a straight-line basis over the average period until the benefit become vested.
The retirement benefit obligation recognized in the balance sheets represents the present value of the defined benefit
obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of plan assets. Any asset
