Information Document - Dhaka Stock Exchange

3.1.6 Retirements and disposalsAn asset is derecognised on disposal or when no future economic benefits are expectedfrom its use, whichever comes earlier. Gains or losses arising from the retirement ordisposal of an item of property, plant and equipment are determined by comparing theproceeds from disposal with the carrying amount of the same, and are recognised netwithin 'other income' in the profit and loss account.3.2 InventoriesInventories are measured at cost. The fuel tariff calculation formula as per PPA betweenthe company and BPDB assures recovery of cost. The cost of inventories is based on thefirst in first out principle, and includes expenditure incurred in acquiring the inventoriesand other costs incurred in bringing them to their existing location and condition. Wheninventories are used, the carrying amount of those inventories is recognised in the periodin which the related revenue is recognised.3.3 Cash and cash equivalentsCash and cash equivalents comprise cash in hand and cash at bank.3.4 Trade receivables and bad debtsTrade receivables are recognised at cost which is the fair value of the consideration givenfor them.Provision for debts doubtful of recovery, if any, are made at the discretion of management.3.5 ProvisionsA provision is recognised on the balance sheet date if, as a result of past events, thecompany has a present legal or constructive obligation that can be estimated reliably, andit is probable that an outflow of economic benefits will be required to settle theobligation.