2012 TPSEA Annual Report - Serena Hotels

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Notes to the Financial Statements 1 General information TPS Eastern Africa Limited is incorporated in Kenya under the Companies Act as a public limited liability company and is domiciled in Kenya. The address of its registered office is: Williamson House 4th Ngong Avenue PO Box 48690 00100 NAIROBI KENYA The Company’s shares are listed on the Nairobi Securities Exchange. For the Kenya Companies Act reporting purposes, the balance sheet is represented by the statement of financial position and profit or loss by the statement of comprehensive income in these financial statements. 2 Summary of significant accounting policies The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented, unless otherwise stated. (a) Basis of preparation The financial statements are prepared in compliance with International Financial <strong>Report</strong>ing Standards (IFRS). The measurement basis applied is the historical cost basis, except where otherwise stated in the accounting policies below. The financial statements are presented in Kenya Shillings (Shs), rounded to the nearest thousands, except where otherwise indicated. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or where assumptions and estimates are significant to the financial statements, are disclosed in Note 3. Changes in accounting policy and disclosures (i) New and amended standards adopted by the Group • The amendment to IAS 24, ‘Related party disclosures’ clarifies and simplifies the definition of a related party and removes the requirement for government-related entities to disclose details of all transactions with the government and other government-related entities. The amended definition means that some entities will be required to make additional disclosures, e.g., an entity that is controlled by an individual that is part of the key management personnel of another entity is now required to disclose transactions with that second entity. There has been minimal impact on related party disclosures following adoption of this amendment. • The amendments to IFRS 7, ‘Financial Instruments - Disclosures’ are part of the 2010 <strong>Annual</strong> Improvements and emphasises the interaction between quantitative and qualitative disclosures about the nature and extent of risks associated with financial instruments. The amendment has also removed the requirement to disclose the following; • Maximum exposure to credit risk if the carrying amount best represents the maximum exposure to credit risk; • Fair value of collaterals; and • Renegotiated assets that would otherwise be past due but not impaired. 44 TPS EASTERN AFRICA LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS 2011
Notes to the Financial Statements (continued) 2 Summary of significant accounting policies (continued) (a) Basis of preparation (continued) Changes in accounting policy and disclosures (continued) (i) New and amended standards adopted by the Group (continued) The application of the above amendment has simplified financial risk disclosures made by the Group. Other amendments and interpretations to standards became mandatory for the year beginning 1 January 2011 but had no significant effect on the Group’s financial statements. (ii) Standards, amendments and interpretations to existing standards that are not yet effective and have not been early adopted by the Group Numerous new standards, amendments and interpretations to existing standards have been issued but are not yet effective. Below is the list of new standards that are likely to be relevant to the Group. However, the directors are yet to assess the impact on the Group’s operations. Standard Title applicable for financial years beginning on/after IAS 19 Employee benefits 1 January 2013 IFRS 9 Financial instruments 1 January 2015 IFRS 13 Fair value measurement 1 January 2013 • IAS 19, Employee benefits The impact on the Group will be as follows: to eliminate the corridor approach and recognise all actuarial gains and losses in other comprehensive income as they occur, to immediately recognise all past service costs; and to replace interest cost and expected return on plan assets with a net interest amount that is calculated by applying the discount rate to the net defined benefit liability/(asset). The amendment will not have a significant impact on the Group statement of financial position since all actuarial losses are recognised immediately in the income statement. • IFRS 9, ‘Financial instruments’ IFRS 9, was issued in November 2009 and October 2010 and replaces those parts of IAS 39 relating to the classification and measurement of financial instruments. IFRS 9 requires financial assets to be classified into two measurement categories: those measured as at fair value and those measured at amortised cost. The determination is made at initial recognition. The classification depends on the entity’s business model for managing its financial instruments and the contractual cash flow characteristics of the instrument. For financial liabilities, the standard retains most of the IAS 39 requirements. The main change is that, in cases where the fair value option is taken for financial liabilities, the part of a fair value change due to an entity’s own credit risk is recorded in other comprehensive income rather than in statement of comprehensive income, unless this creates an accounting mismatch. The Group is yet to assess IFRS 9’s full impact and intends to adopt IFRS 9 no later than the accounting period beginning on or after 1 January 2015. TPS EASTERN AFRICA LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS 2011 45
Page 1: 2011 Annual Report and Accounts
Page 4 and 5: Directors and Administration BOARD
Page 6 and 7: Operating Subsidiaries and Properti
Page 8 and 9: Notice of Annual General Meeting No
Page 10 and 11: Chairman’s Statement Mr. Francis
Page 12 and 13: Chairman’s Statement (continued)
Page 14 and 15: Taarifa ya Mwenyekiti (kuendelea) u
Page 16 and 17: The Managing Director’s Report Mr
Page 18 and 19: The Managing Director’s Report (c
Page 20 and 21: Taarifa kutoka kwa Meneja Mkurugenz
Page 22 and 23: Board of Directors 1 MR. FRANCIS OK
Page 24 and 25: Corporate Governance Statement The
Page 26 and 27: Corporate Governance Statement (con
Page 28 and 29: Corporate Social Responsibility At
Page 30 and 31: Charitable Donations Serena and its
Page 32 and 33: Directors’ Report The Directors s
Page 34 and 35: Report of the Independent Auditor t
Page 36 and 37: Consolidated Statement of Comprehen
Page 38 and 39: Company Statement of Financial Posi
Page 40 and 41: Consolidated Statement of Changes i
Page 42 and 43: Company Statement of Changes in Equ
Page 46 and 47: Notes to the Financial Statements (
Page 84 and 85: Notes
Page 86: FOLD 1 / KUNJA 1 Please afix Stamp

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