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KD Holding Group
Notes to Consolidated Financial Statements as at and for the year ended 31 December 2007
of assets that generates cash inflows that are largely
independent of the cash inflows from other assets
receipts or payments, and items of income or expense
associated with investing or financing cash flows.
or groups of assets. The criterion for determining the
cash-generating units are individual business areas
2.13 Share capital and dividend distribution
of the Group. The recoverable amount of an asset or
a cash-generating unit is the higher of its fair value
less costs to sell and its value in use.
Ordinary and preference-shares are equity.
Incremental costs directly attributable to the issue
of new shares or options or to the acquisition of a
2.10 Offsetting financial instruments
business are shown in equity as a deduction, net of
tax, from the proceeds.
Financial assets and liabilities are offset and the net
amount reported in the balance sheet only when there
is a legally enforceable right to offset the recognised
amounts and there is an intention to settle on a net
basis, or to realise the asset and settle the liability
simultaneously.
2.11 Inventories
Dividends on ordinary and preference-shares are
recognised as liability in the period in which they
are approved by the Company’s shareholders.
Dividends for the year that are declared after
the balance sheet date and before the financial
statements are authorised for issue are disclosed in
the subsequent events note (see Note 30).
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Inventories are stated at the lower of cost and
net realisable value. Cost is determined using the
weighted average cost method. Net realisable
value is the estimated selling price in the ordinary
course of business, less applicable variable selling
expenses.
Where the Company or other members of the
Group purchases the Company’s equity share
capital, the consideration paid is deducted from
total shareholders’ equity. Where such shares are
subsequently sold or reissued, any consideration
received is included in shareholders’ equity.
2.12 Cash and cash equivalents
2.14 Insurance and investment contracts
Cash and cash equivalents include cash in hand
and deposits held at call with banks. The Group
report cash flows from operating activities using the
indirect method, whereby profit or loss is adjusted for
the effects of transactions of a non-cash nature, any
deferrals or accruals of past or future operating cash
The Group issues contracts that transfer insurance
risk or financial risk or both. Insurance contracts are
those contracts that transfer significant insurance
risk. Such contracts may also transfer financial
risk. As a general guideline, the Group defines as