TPCC Annual Report 2008.indd - HeidelbergCement

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Tanzania Portland Cement Company Ltd, Annual Report 2008 Interest bearing loans and borrowings All loans and borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the amortisation process. Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the respective assets. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Intangible assets Intangible assets acquired are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses. Internally generated intangible assets are not capitalised and expenditure is charged against profits in the year in which the expenditure is incurred. The useful lives of intangible assets are assessed to be finite. Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The annual rate of amortisation which has been consistently applied is 14% – 50%. The amortisation period and the amortisation method for an intangible asset are reviewed at least at each financial year- end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortisation period or method, as appropriate, and treated as changes in accounting estimates. The amortisation expense on intangible assets is recognised in the income statement. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal pro- ceeds and the carrying amount of the asset and are recognised in profit or loss when the asset is derecognised. Impairment of non-financial assets The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash generating unit’s fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses of continuing operations are recognised in the income statement in those expense categories consistent with the function of the impaired asset. An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the 36
Tanzania Portland Cement Company Ltd, Annual Report 2008 asset’s recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the income statement. After such a reversal the depreciation charge is adjusted in future periods to al- locate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life. Investments and other financial assets Financial assets within the scope of IAS 39 are classified as financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments, or available-for-sale financial assets, as appropriate. When financial assets are recognised initially, they are measured at fair value, plus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs. The Company determines the classification of its financial assets on initial recognition and, where allowed and appropriate, re-evaluates this designation at each financial year end. All regular way purchases and sales of financial assets are recognised on the trade date, which is the date that the Com- pany commits to purchase the asset. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the period generally established by regulation or convention in the marketplace. Financial assets at fair value through profit or loss: Financial assets at fair value through profit or loss includes financial assets held for trading and financial assets designated upon initial recognition as at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired for the purpose of selling in the near term. Held-to-maturity investments: Non-derivative financial assets with fixed or determinable payments and fixed maturities are classified as held-to-maturity when the Company has the positive intention and ability to hold to maturity. After initial measurement held-to-maturity investments are measured at amortised cost using the effective interest method. Gains and losses are recognised in profit or loss when the investments are derecognised or impaired, as well as through the amortisation process. Loans and receivables: Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial measurement loans and receivables are carried at amortised cost using the effective interest method less any allowance for impairment. Gains and losses are recognised in profit or loss when the loans and receivables are derecognised or impaired, as well as through the amortisation process. Available-for-sale financial investments: Available-for-sale financial assets are those non-derivative financial assets that are designated as available-for-sale or are not classified in any of the three preceding categories. After initial measurement, available-for-sale financial assets are measured at fair value with unrealised gains or losses recognised directly in equity until the investment is derecognised or determined to be impaired at which time the cumulative gain or loss previously recorded in equity is recognised in profit or loss. Fair value: The fair value of investments that are actively traded in organised financial markets is determined by refer- ence to quoted market bid prices at the close of business on the balance sheet date. For investments where there is no 37
Page 1 and 2: Tanzania Portland Cement Company Li
Page 3 and 4: Table of contents Tanzania Portland
Page 5 and 6: Kwa Wanahisa, TANZANIA PORTLAND CEM
Page 7 and 8: Maelezo mafupi ya Mwenyekiti Tanzan
Page 9 and 10: Administrative costs were affected
Page 11 and 12: kutokana na uagizaji wa klinka kuto
Page 13 and 14: Mradi wa Upanuzi Mradi wa upanuzi w
Page 15 and 16: Tanzania Portland Cement Company Lt
Page 19 and 20: Taarifa Muhimu za Kampuni Eneo la s
Page 21 and 22: Directors’ remuneration Tanzania
Page 25 and 26: Malipo kwa Wakurugenzi Tanzania Por
Page 27 and 28: Walemavu Tanzania Portland Cement C
Page 31 and 32: Balance sheet Tanzania Portland Cem
Page 33 and 34: Cash flow statement Tanzania Portla
Page 35 and 36: IFRS 8 Operating Segments Tanzania
Page 37: Revenue recognition Tanzania Portla
Page 47 and 48: IFRIC 16 Hedges of a Net Investment
Page 49 and 50: 13. Administrative expenses Tanzani
Page 51 and 52: 20. Inventories Tanzania Portland C
Page 53 and 54: 25. Other borrowings Tanzania Portl
Page 57 and 58: 29. Related party transactions Tanz
Page 59 and 60: 33. Incorporation The Company is in
Page 63 and 64: • • • • • • • • •
Page 65 and 66: • • • • • • • • •
Page 68: Tanzania Portland Cement Company Lt

TPCC Annual Report 2008.indd - HeidelbergCement

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