Annual Report 2011 - Colombo Stock Exchange

NOTES TO THE FINANCIAL STATEMENTS3.3.8 Earnings per shareThe Company presents basic earnings per share (EPS) for its ordinary shares. Basic EPS iscalculated by dividing the profit or loss attributable to ordinary shareholders of theCompany by the weighted average number of ordinary shares outstanding during theperiod.3.3.9 Cash Flow StatementUNION CHEMICALS LANKA PLC2 0 1 1 - A N N U A L R E P O R TThe Cash Flow Statement has been prepared using the "indirect method".Interest paid is classified as an operating cash flow. Dividend and interest income areclassified as cash flows from investing activities.Dividends paid are classified as financing cash flows.3.3.10 New Accounting Standards Issued but not Effective at the Reporting DateThe Institute of Chartered Accountants of Sri Lanka has issued a new volume of Sri LankaAccounting Standards which will become applicable for annual periods beginning on orstafter 1 January 2012. Accordingly these Standards have not been applied in preparingththese Financial Statements as they are not effective for the year ended 25 December 2011.The Company is currently in the process of evaluating the potential effect of these standardson its Financial Statements and the impact on the adoption of these Standards have notbeen quantitied as at the reporting date.31