Annual Report 2012 - Dialog

78 l Dialog Axiata PLC l Annual Report 2012
Notes to the Financial Statements
5 Critical accounting estimates and judgments contd.
5.1 Critical accounting estimates and assumptions contd.
(j) Impairment of trade receivables
The Company and the Group assesses at the date of statement of financial position whether there is objective evidence
that trade receivables have been impaired. Impairment loss is calculated based on a review of the current status of
existing receivables and historical collections experience. Such provisions are adjusted periodically to reflect the actual and
anticipated impairment.
6 Explanation of transition to SLFRSs
The accounting policies set out in note 2 have been applied in preparing the financial statements for the year ended 31
December 2012 together with comparative information for the year ended 31 December 2011, and opening SLFRS
statement of financial position as at 1 January 2011 being the transition date of SLFRSs for the Company and the Group.
In preparing SLFRS statement of financial position for previously reported financial periods, required adjustments have been
made in accordance with respective SLFRSs. The effect of the transition from SLASs to SLFRSs has been illustrated in the
reconciliation statements and accompanying notes to the reconciliations.
Set out below are the applicable exemptions and exceptions under SLFRS 1 applied by the Company and the Group in
transition to SLFRSs.
Exemptions
Following voluntary exemptions have been applied by the Company and the Group:
Exemption for business combinations
SLFRS 1 provides the option to apply SLFRS 3,’Business combinations’, prospectively from the transition date or
from a specific date prior to the transition date. This provides relief from full retrospective application that would require
restatement of all business combinations prior to the transition date. The Company and the Group elected to apply SLFRS
3 prospectively to business combinations occurring after its transition date. Business combinations occurring prior to the
transition date have not been restated.
Following voluntary exemptions have been applied by the Company and the Group (Contd):
Exemption for revaluation as deemed cost
The Company and the Group elected to measure land and buildings at deemed cost as at 1 January 2011.
The following voluntary exemptions have not been applied by the Company and the Group:
Investments in subsidiaries, jointly controlled entities and associates.
The remaining voluntary exemptions do not apply to the Company and the Group:
LKAS 23 - Borrowing cost, as the policy adopted under previous GAAP (SLASs) was inline with LKAS 23.
SLFRS 2 - Share-based payments, as such scheme was not vested as at the date of transition to SLFRSs.
SLFRS 4 - Insurance contracts, as this is not relevant to the Company’s and the Group’s operations.
LKAS 21 - Foreign operations, as the Group does not have any foreign operations as defined in LKAS 21.