Page 119 - Interloop Annual Report 2018-2019

NOTES TO THE UNCONSOLIDATED NOTES TO THE UNCONSOLIDATED

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30, 2019 FOR THE YEAR ENDED JUNE 30, 2019

awards for which the related service and non-market performance conditions are expected to be met, such that Deferred
the amount ultimately recognized is based on the number of awards that meet the related service and non- market
performance conditions at the vesting date. Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising
from differences between the carrying amount of assets and liabilities in the unconsolidated financial statements
When share options are exercised, the proceeds received, net of any transaction costs, are credited to share and the corresponding tax basis used in the computation of taxable income. Deferred tax is calculated by using the
capital (nominal value) and share premium. tax rates enacted at the balance sheet date. In this regard, the effect on deferred taxation of the portion of income
subjected to Final Tax Regime is adjusted in accordance with the requirements of Accounting Technical Release –
5.11 Trade and other payables 27 of the Institute of Chartered Accountants of Pakistan, if considered material.

Trade and other payables are initially recognized at fair value and subsequently at amortized cost using effective Deferred tax liability is recognized for all taxable temporary differences and deferred tax asset is recognized for
interest rate method. Exchange gains and losses arising on translation in respect of liabilities in foreign currency all deductible temporary differences and carry forward of unused tax losses and unused tax credits, if any, to the
are added to the carrying amount of the respective liabilities. extent that it is probable that future taxable profit will be available against which these can be utilized.
Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be
5.12 Ijarah realized. Significant management judgment is required to determine the amount of deferred tax assets that can
be recognized, based upon the likely timing and level of future taxable profits together with future tax planning
Ijarah payments under an Ijarah are recognized as an expense in the statement of profit or loss on a straight-line strategies.
basis over the Ijarah term.
5.16 Foreign currency translation
5.13 Provisions
All monetary assets and liabilities in foreign currencies are translated into rupees at exchange rates prevailing at
Provisions are recognized in the balance sheet when the Company has a present legal or constructive obligation the balance sheet date. Transactions in foreign currencies are translated into rupees at exchange rates prevailing
as a result of past events and it is probable that an outflow of resources will be required to settle the obligation and at the date of transaction. Non-monetary assets and liabilities that are measured in terms of historical cost in a
a reliable estimate of the amount can be made. foreign currency are translated into rupees at exchange rates prevailing at the date of transaction. Non-monetary
assets and liabilities denominated in foreign currency that are stated at fair value are translated into rupees at
Provisions are reviewed at each balance sheet date and are adjusted to reflect the current best estimate. If it is no exchange rates prevailing at the date when fair values are determined. Exchange gains and losses are included in
longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the statement of profit or loss immediately.
the provisions are reversed.
5.17 Borrowing costs
5.14 Contingencies
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are
The assessment of the contingencies inherently involves the exercise of significant judgment as the outcome of the assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the
future events cannot be predicted with certainty. The company, based on the availability of the latest information, cost of those assets, until such time when the assets are substantially ready for their intended use or sale. All other
estimates the value of contingent assets and liabilities which may differ on the occurrence / non-occurrence of the borrowing costs are charged to statement of profit or loss in the period of as and when incurred.
uncertain future events.
5.18 Government grants
5.15 Taxation
Government grants are recognized when there is reasonable assurance that entity will comply with the conditions
Current attached to it and grant will be received.

The charge for current taxation is based on taxable income at current rates of taxation after taking into account tax 5.19 Earnings per share 2018 - 19
credits, rebates and exemptions available, if any. However, for income covered under Final Taxation Regime (FTR),
Interloop Limited taxation is based on the applicable tax rates under such Regime after taking into account tax credits, rebates and The Company presents basic and diluted earnings per share (EPS) for its ordinary shares. Basic EPS is calculated Annual Report
by dividing the profit by weighted average number of shares outstanding during the period. Diluted EPS is calculated
exemptions, if any.
by adjusting for the effects of all dilutive potential ordinary shares.

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