Zambian Breweries Annual Report - Released June 2012 - SABMiller

Zambian Breweries Plc
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Zambian Breweries Plc
Financial Statements
For the year ended 31 March 2012
(all amounts are in millions of Kwacha unless otherwise stated)
Notes (continued)
2. Summary of significant accounting policies (continued)
(d) Trade receivables
Trade receivables are amounts due from customers for merchandise sold in the ordinary course of
business. If collection is expected in one year or less (or in the normal operating cycle of the
business if longer), they are classified as current assets. If not, they are presented as non-current
assets. Trade receivables are recognised initially at fair value and subsequently measured at
amortised cost using the effective interest method less provision for impairment.
(e)
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term
highly liquid investments with original maturities of three months or less and bank overdrafts.
Bank overdrafts are shown within borrowings in current liabilities.
(f)
Trade payables
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary
course of the business from suppliers. Accounts payable are classified as current liabilities if
payment is due within one year or less. If not, they are presented as non-current liabilities. Trade
payables are recognised initially at fair value and subsequently measured at amortised cost using
the effective interest method.
(g)
Borrowings
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are
subsequently stated at amortised cost using the effective interest method; any differences between
proceeds (net of transaction costs) and the redemption value are recognised in profit or loss over
the period of the borrowings using the effective interest method.
Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to
the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee
is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that
some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity
services and amortised over the period of the facility to which it relates.
Borrowings are classified as current liabilities unless the Company has an unconditional right to
defer settlement of the liability for at least 12 months after the end of reporting period.
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