2011 Annual Report & Financial Statements - Kengen

Notes to the Financial Statements(Continued)
Notes to the Financial Statements(Continued)
KenGen
KenGen
88
2011 ANNUAL REPORT & FINANCIAL STATEMENTS For The Year Ended 30 June 2011
For The Year Ended 30 June 2011 2011 ANNUAL REPORT & FINANCIAL STATEMENTS
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39. Operating Segment Information
The company’s only activity is generation of electricity. The business is organised on a regional platform – Western
and Eastern Hydros, Mombasa, Olkaria, Head Office and Ngong’ Hill which only serves the necessary functional and
administrative roles in these areas and not allocation of resources and financial performance assessment. The operations
and management reporting are all done under the head office.
40. Comparatives
Where necessary, comparative figures have been adjusted to conform to changes in presentation in the current year.
Where changes are made and affect the statement of financial position, a third statement of financial position as at the
beginning of the earliest period presented is presented together with the corresponding notes.
41. Prior Year Adjustments
In compiling the financial information included herein, the following adjustments were made to make all the financial
statements compliant with International Financial Reporting Standards (IFRSs) applicable for the financial period ended
30 June 2011.
a) Restatement of Audited Statement of Comprehensive Income for the year ended 30 June 2010
As previously Prior year
reported adjustment Restated
2010 2010 2010
Shs’000 Shs’000 Shs’000
Revenue 1 11,142,729 (144,300) 10,998,429
Foreign exchange gain on other monetary items 2 130,149 144,300 274,449
Unrealised foreign exchange differences on
revaluation of borrowings 3 - (2,758,474) (2,758,474)
Recoverable foreign exchange differences 4 - 2,758,474 2,758,474
Operating costs 5 8,629,648 (71,200) 8,558,448
Taxation (charge)/credit 6 (456,391) 1,257,925 801,534
1
Relates to reclassification of foreign exchange adjustment payments from revenue (note 4) to recoverable realised
exchange differences (note 19).
2
Relates to removal of realised foreign exchange losses on loan repayment previously posted in foreign exchange gain
on other monetary items (note 10) and equity.
3
Relates to reclassification of unrealised exchange differences on revaluation of loans for the year from equity to other
gains and losses (note 7).
4
Relates to recognition of recoverable unrealised exchange differences for the year (note 7 and 19).
5
Relates to understatement of the defined benefit obligation (note 28).
6
Relates to deferred tax overprovision adjustment (note 29).
41. Prior Year Adjustments (Continued)
b) Restatement of Audited Statement of Financial position as at 30 June 2010
As previously Prior year
reported adjustment Restated
2010 2010 2010
Shs’000 Shs’000 Shs’000
Assets
Recoverable foreign exchange adjustment 1 - 6,955,455 6,955,455
Equity and Liabilities
Foreign currency translation reserve 1 6,955,455 (6,955,455) -
Retained earnings 2 28,168,569 260,885 28,429,454
Retirement benefit liability 3 339,428 1,079,672 1,419,100
Deferred tax liability 4 13,341,831 (1,340,557) 12,001,274
1
Relates to reclassification of recoverable unrealised exchange differences from equity to receivables (note 19).
2
Relates to deferred tax overprovision adjustment (note 29 – (Shs 1,340,557,000)) and adjustment for understatement
of defined benefit obligation (Shs 1,079,672,000).
3
Relates to understatement of the defined benefit obligation (note 28).
4
Relates to deferred tax overprovision adjustment (note 29).
c) Restatement of Audited Statement of Financial position as at 30 June 2009
As previously Prior year
reported adjustment Restated
2010 2010 2010
Shs’000 Shs’000 Shs’000
Assets
Recoverable foreign exchange adjustment1 - 4,341,281 4,341,281
Equity and Liabilities
Foreign currency translation reserve 1 4,341,281 (4,341,281) -
Retained earnings 2 25,735,015 (674,397) 25,060,618
Retirement benefit liability 3 339,428 1,150,872 1,490,300
Deferred tax liability 4 13,279,283 (476,425) 12,802,808
1
Relates to reclassification of recoverable unrealised exchange differences from equity to receivables (note 19).
2
Relates to deferred tax overprovision adjustment (note 29 – (Shs 476,425,000)) and adjustment for understatement
of defined benefit obligation (Shs 1,150,872,000).
3
Relates to understatement of the defined benefit obligation (note 28).
4
Relates to deferred tax overprovision adjustment (note 29)
42 Currency
These financial statements are prepared in Kenya shillings thousands (Shs’000) which is the company’s functional and
presentation currency.