Annual Report 2011 - Colombo Stock Exchange

Beruwela Walk Inn PLC 27Notes to the Financial StatementsYear ended 31 st December 20112. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)2.6. Income Statement (cont’d)2.6.2. Revenue and Expenses (cont’d)2.6.2.1. Revenue Recognition (cont’d)c) DividendsDividend income is recognized when the shareholders’ right to receive the paymentis established.d) OthersOther income is recognized on an accrual basis.Gains and losses of a revenue nature on the disposal of property, plant & equipmenthave been accounted for in the Income Statement.2.6.2.2. Expenditure Recognitiona) Expenses are recognized in the Income Statement on the basis of a directassociation between the cost incurred and the earning of specific items of income.All expenditure incurred in the running of the business and in maintaining theproperty, plant & equipment in a state of efficiency has been charged to income inarriving at the loss for the year.b) For the purpose of presentation of Income Statement, the Directors are of theopinion that “function of expenses” method presents fairly the elements of theCompany’s performance, hence such presentation method is adopted.2.7. Segment ReportingA segment is a distinguishable component of an enterprise that is engaged in either providing products orservices (business segment) or in providing product or services within a particular economic environment(geographical segment), which is subject to risk and rewards that are different from those of the segment.However there are no distinguishable components to be identified as segment for the Company.2011Rs.2010Rs.3. OTHER OPERATING INCOMEExchange Gain - 5,799,9264. LOSS FROM OPERATING ACTIVITIESStated after charging :Auditors' Fees and Expenses 28,600 28,600Depreciation 6,733,000 613,629Salaries, Wages and Other Related Costs 676,922 619,357Exchange Loss 10,860,653 –