Annual Report 2012 - Dialog

82 l Dialog Axiata PLC l Annual Report 2012
Notes to the Financial Statements
6 Explanation of transition to SLFRSs contd.
6.1.2 Reconciliation of comprehensive income
Group Company
Year ended 31 December 2011 Year ended 31 December 2011
Under SLAS Transitional Under SLFRS Under SLAS Transitional Under SLFRS
31 December adjustments 31 December 31 December adjustments 31 December
Note 2011 2011 2011 2011
Revenue 45,412,002 Nil 45,412,002 41,729,199 Nil 41,729,199
Direct costs (24,949,185) Nil (24,949,185) (22,494,294) Nil (22,494,294)
Gross margin 20,462,817 Nil 20,462,817 19,234,905 Nil 19,234,905
Distribution costs (6,265,252) Nil (6,265,252) (5,858,998) Nil (5,858,998)
Administrative costs (8,054,621) (18,927) (8,073,548) (6,260,281) (17,748) (6,278,029)
Other income a 75,068 8,008 83,076 69,961 Nil 69,961
Operating profit 6,218,012 (10,919) 6,207,093 7,185,587 (17,748) 7,167,839
Finance costs - net b (447,129) (321,426) (768,555) (457,117) (321,426) (778,543)
Share of profit from
associate - net of tax 9,681 Nil 9,681 Nil Nil Nil
Profit before tax 5,780,564 (332,345) 5,448,219 6,728,470 (339,174) 6,389,296
Income tax (578,657) Nil (578,657) (566,238) Nil (566,238)
Profit for the year 5,201,907 (332,345) 4,869,562 6,162,232 (339,174) 5,823,058
Other comprehensive income
Actuarial gains - from
retirement benefit obligation
- net of tax e Nil 18,927 18,927 Nil 17,748 17,748
Total comprehensive income
for the year 5,201,907 (313,418) 4,888,489 6,162,232 (321,426) 5,840,806
6.1.3 Reconciliation of cash flow statement
There is no material differences between the Company and Group statements of cash flows presented under SLFRSs and
the statements of cash flows presented under SLASs.
6.1.4 Notes to the reconciliation of SLAS to SLFRS
(a ) Investment in associate
The adjustment to the investment in associate of Rs. 8,008,000 recognizes the impact for accounting for fair value on the
disposal of 74% interest in the subsidiary, Dialog Business Services (Private) Limited (DBS) as a deemed disposal. The
corresponding adjustment is made as gain on disposal of subsidiary and is classified under other income.
(b ) Borrowings
Under the requirements of LKAS 39 borrowings are initially recognised at fair value whereas under the previous GAAP it was
recognised at cost. The financial statements were adjusted to incorporate relevant changes. Trasactions costs amounting to
Rs. 47,800,000 incurred on issuance of preference shares previously included under stated capital were credited to stated
capital and debited to borrowings. The impact of initial fair valuation amounting to Rs. 1,218,960,920 was credited to the
statement of comprehensive income under finance cost and debited to borrowings on 1 January 2011. The adjustment
for subsequent accounting for amortised cost amounting to Rs. 791,355,458 was debited to statement of comprehensive
income under finance cost and credited to borrowings on 31 December 2011. The impact on finance cost and borrowings
is as follows.