Annual Report 2012 - Dialog

84 l Dialog Axiata PLC l Annual Report 2012
Notes to the Financial Statements
6 Explanation of transition to SLFRSs contd.
6.1.4 Notes to the reconciliation of SLAS to SLFRS contd.
(c ) Trade and other receivables
Group Company
2012 2011 1 Jan 2011 2012 2011 1 Jan 2011
Trade and other receivables
Carrying value 12,022,398 10,282,047 9,635,566 9,378,583 9,023,952 8,078,154
Fair valuation impact (422) (548) (667) (422) (548) (667)
12,021,976 10,281,499 9,634,899 9,378,161 9,023,404 8,077,487
Amount due from related companies
Carrying value 5,381 12,505 19,630 9,560,019 14,008,395 8,791,622
Fair valuation (impact) (290) (960) (1,913) (290) (960) (1,913)
5,091 11,545 17,717 9,559,729 14,007,435 8,789,709
The fair value of the loan given to Axiata Lanka (Private) Limited was discounted using a rate based on the 4.05% fixed rate
as at 1 January 2011.
Under the requirements of LKAS 39 receivables classified as financial assets are initially recognised at fair value whereas
under SLASs it was recognised at cost. The financial statements were adjusted to incorporate relevant changes with
regard to loan given to Axiata Lanka (Private) Limited. The impact of initial fair valuation amounting to Rs. 2,579,987 was
debited to statement of comprehensive income under finance costs and credited to the respective loan on 1 January 2011.
The adjustment for subsequent accounting for amortised cost amounting to Rs. 1,072,338 was credited to statement of
comprehensive income under finance costs and debited to respective loan on 31 December 2011.
(d ) In accordance with provisions of SLFRS 1, the Company and the Group elected the exemption to measure land
and buildings recognised previously at revalued amounts as deemed cost as at 1 January 2011. Accordingly, the
total revaluation reserve amounting to Rs. 96,819,753 and Rs. 131,712,570 was transferred to retained earnings by
the Company and the Group respectively.
Group Company
2011 2011
Revaluation reserve as reported under SLASs 128,469 93,798
Transferred to retained earnings (128,469) (93,798)
Revaluation reserve as reported under SLFRSs Nil Nil
(e) Actuarial gains / (losses) on retirement benefit obligation previously included in administrative costs are now
presented under other comprehensive income based on the requirements of LKAS 19 - Employee Benefits.
(f) Available-for-sale financial asset
Investment in Sri Lanka Institute of Nanotechnology (Private) Limited [Formerly known as Nanco (Private) Limited], which was
previously presented as other investment is now recognised as a financial asset and classified as available-for-sale financial
asset.