Information Document - Dhaka Stock Exchange

3.6 ImpairmentThe carrying amounts of the assets, other than inventories, are reviewed at each reportingdate to determine whether there is any indication of impairment. If any such indicationexists, then the assets' recoverable amount is estimated. No such indication of impairmenthas been raised to date.3.7 RevenueRevenue is recognised in the profit and loss account upon supply of electricity to BPDB,quantum of which is determined by survey of meter reading.3.8 Foreign currency transactionsBAS 21, The Effect of Changes in Foreign Exchange Rates, requires balances resultingfrom transactions denominated in a foreign currency to be converted into Taka at the rateprevailing on the date of the transaction. All monetary assets and liabilities at balancesheet date, denominated in foreign currencies, are to be retranslated at the exchangerates prevailing on balance sheet date.Foreign exchange difference arising from all foreign currency transactions, except for theproject debts, are charged or credited to profit and loss account. Foreign exchangedifference arising from project debts is adjusted against the value of the assets financedby such debt, as provided in the Schedule XI Part I of the Companies Act 1994, whichrequires all exchange differences arising from foreign currency borrowings for property,plant and equipment to be added or deducted from the value of the assets which werefinanced by such borrowings.3.9 LeaseLease payments under operating lease are recognised as expenses in profit and lossaccount on a straight line basis over the lease term. The lessor reserves the right to revisethe rent after each period of five years and can increase the rent by a maximum of twentypercent for five years.3.10 Finance income and expensesFinance income comprises interest income on funds invested. Interest income isrecognised on accrual basis.Finance expenses comprise interest expense on borrowings and other finance relatedcosts. All borrowing costs are recognised in the profit and loss account when they accrueusing the nominal interest rate stated in related loan agreements.