Annual Report 2009/2010 - Colombo Stock Exchange

NOTES TO THE FINANCIAL STATEMENTS
1. Reporting Entity
Lion Brewery (Ceylon) PLC is a public limited liability
company incorporated and domiciled in Sri Lanka and
listed on the Colombo Stock Exchange.
The ultimate parent company is Carson Cumberbatch
PLC.
The registered office of the Company is situated at
No. 61, Janadhipathi Mawatha Colombo 1 and the
principal place business is situated at No. 254, Colombo
Road, Biyagama.
The principal activities of the Company are brewing
and bottling of high quality beers, under license, for
local and export markets and remained unchanged
during the year.
There were no significant changes in the nature of the
principal activities of the Company during the
financial year under review.
2 Basis of Preparation
2.1 Statement of Compliance
The Financial Statements of Lion Brewery
(Ceylon) PLC comprise the Balance Sheet,
Income Statement, Statement of Changes in
Equity, Cash Flow Statement and Notes to the
Financial Statements. These statements are
prepared in accordance with the Accounting
Standards laid down by the Institute of Chartered
Accountants of Sri Lanka and comply with the
requirements of Companies Act No 7 of
2007.
The Financial Statements are presented in
accordance with the SLAS 3 (Revised 2005) -
"Presentation of Financial Statements", to ensure
comparability both with the entity's financial
statements of previous periods and with the
Financial Statements of other entities.
The Financial Statements were authorised for issue
by the Directors on 7th May 2010.
2.2 Basis of Measurement
The Financial Statements have been prepared on
the historical cost basis and applied consistently
with no adjustments being made for inflationary
factors affecting the Financial Statements, except
for the following;
- Defined Benefit Asset is recognized as the net total
of the plan assets, plus unrecognized past service cost
and unrecognized actuarial losses, less unrecognized
actuarial gains and the present value of the defined
benefit obligation.
2.3 Functional Currency and Presentation
Currency
All values presented in the Financial Statements
are in Sri Lankan Rupees Thousands ( Rs.'000s)
which is the Company's functional currency,
unless otherwise indicated.
2.4 Comparative Information
The comparative information are reclassified
wherever necessary with current year's
presentation in order to provide a better
presentation.
2.5 Use of Estimates and Judgements
The preparation of Financial Statements requires
management to make judgements, estimates and
assumptions that affect the application of accounting
policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may
differ from these estimates.
Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the
estimate is revised and in any future periods affected.
Information about significant areas of estimation and
uncertainty that have the most significant effect on the
amounts recognised in the Financial Statements are
described below.
2.5.1 Assessment of Impairment
The Company assesses at each Balance Sheet date
whether there is objective evidence that an asset or
portfolio of assets is impaired. The recoverable
amount of an asset or cash generating unit is the
greater of its value in use and its fair value less cost
to sell.
In assessing value in use, the estimated future cash
flows are discounted to present value using
appropriate discount rates that reflects the current
market assessments of the time value of money and
risks specific to the asset.
F i n a n Fi c n i a n l c i S a tl a S t t e a m t e m n e t n s t s
- Freehold Land and buildings are measured at
cost at the time of acquisition and subsequently at
revalued amounts, which are the fair values at the
date of revaluation less accumulated depreciation
and impairment losses, if any.
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