Shopper's Stop Limited - Securities and Exchange Board of India

Liability for leave encashment, a defined benefit scheme, is provided for considering the
balance of unavailed encashable leave to the credit of employees at the year end and the salary
last drawn.
f) Revenue Recognition
Revenue is recognized when it is earned and no significant uncertainty exists as to its
realization or collection.
Sale of traded merchandise is recognized on delivery to the customer, when the property in the
goods is transferred for a price, when significant risks and rewards of ownership have been
transferred and no effective ownership control is retained.
Service Fees are recognised when the service is performed, in accordance with contractual
obligations.
g) Income Taxes
Income taxes are accounted for in accordance with Accounting Standard 22 on “Accounting for
Taxes on Income”. Taxes comprise both current and deferred tax.
Current tax is measured at the amount expected to be paid to/recovered from the taxation
authorities, using applicable tax rates and tax laws.
The tax effect of the timing differences that result between taxable income and accounting income
and are capable of reversal in one or more subsequent periods are recorded as a deferred tax asset
or deferred tax liability. They are measured using the substantively enacted tax rates and tax
regulations. The carrying amount of deferred tax assets at each balance sheet date is reduced to the
extent that it is no longer reasonably certain that sufficient future taxable income will be available
against which the deferred tax asset can be realised.
h) Contingent Liabilities
These are disclosed by way of notes to the Balance Sheet. Provision is made in the accounts in
respect of those liabilities, which are likely to materialise after the year-end, till the finalisation of
accounts and have material effect on the position stated in the Financial Statements.
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