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32 Zambian Breweries Plc
Consolidated Financial Statements
For The Year Ended 31 March 2009
(all amounts are in millions of Kwacha unless otherwise stated)
NOTES (continued)
4. Critical accounting estimates and judgements
In the process of applying the Group’s accounting policies, management has made judgements in
determining:
• the classification of financial assets and leases
• whether buildings meet the criteria to be classified as investment property
• whether assets are impaired
Estimates and judgements are continually evaluated and are based on historical experience and other
factors, including experience of future events that are believed to be reasonable under the circumstances.
Property, plant and equipment Critical estimates are made by the directors in determining depreciation
rates for property, plant and equipment. The rates used are set out in accounting policy (k) above.
Receivables Critical estimates are made by the Directors in determining the recoverable amount of impaired
receivables.
Impairment of goodwill The Group tests annually whether goodwill has suffered any impairment, in
accordance with accounting policy (m). The recoverable amounts of cash-generating units have been
determined based on value-in-use calculations.
Income taxes The Group is subject to income tax for the Company and in various subsidiaries. Significant
judgment is required in determining the Group’s provision for income taxes. There are many transactions and
calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The
Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will
be due. Where the final tax outcome of these matters is different from the amounts that were initially
recorded, such differences will impact the income tax and deferred tax provisions in the period in which such
determination is made.