Page 199 - Interloop Annual Report 2018-2019

NOTES TO THE CONSOLIDATED NOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

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

to be entitled in exchange for transferring goods or services to a customer. For each contract with a d) Dividend income
customer, the Company: identifies the contract with a customer; identifies the performance obligations Dividend income is recognised when the Company’s right to receive the payment is established.
in the contract; determines the transaction price which takes into account estimates of variable
consideration and the time value of money; allocates the transaction price to the separate performance e) Other income
obligations on the basis of the relative stand-alone selling price of each distinct good or service to be Other revenue is recognized when it is received or when the right to receive payment is established.
delivered; and recognizes revenue when or as each performance obligation is satisfied in a manner that
depicts the transfer to the customer of the goods or services promised.
7.2.2 Trade and other receivables
Variable consideration within the transaction price, if any, reflects concessions provided to the customer Trade receivables are initially recognized at fair value and subsequently measured at amortized cost
such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any using the effective interest method, less any allowance for expected credit losses.
other contingent events. Such estimates are determined using either the ‘expected value’ or ‘most likely
amount’ method. The measurement of variable consideration is subject to a constraining principle The Company has applied the simplified approach to measuring expected credit losses, which uses a
whereby revenue will only be recognized to the extent that it is highly probable that a significant reversal lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been
in the amount of cumulative revenue recognized will not occur. The measurement constraint continues grouped based on days overdue.
until the uncertainty associated with the variable consideration is subsequently resolved. Amounts
received that are subject to the constraining principle are initially recognized as deferred revenue in the Other receivables are recognized at amortized cost, less any allowance for expected credit losses.
form of a separate refund liability.
7.2.3 Impacts of adoption of IFRS 15 on these consolidated financial statements
a) Sale of goods
The Company has concluded that revenue from sale of goods should be recognized at the point in time
Revenue from the sale of goods is recognized at the point in time when the customer obtains when control of the asset is transferred to the customer, generally on delivery of the goods. Therefore,
control of the goods, which is generally at the time of delivery. Otherwise, control is transferred the adoption of IFRS 15 did not have an impact on the timing of revenue recognition and the amount of
over time and revenue is recognized over time by reference to the progress towards complete revenue recognized.
satisfaction of the relevant performance obligation if one of the following criteria is met:
The Company provides sales discounts to certain customers which is not in the nature of volume rebates
- the customer simultaneously receives and consumes the benefits provided by the Company’s (discounts). The Company estimates provision for discounts and revenue is reduced by the amount of
performance as the Company performs; provision. This is also in alignment with the requirements of IFRS 15 and did not have an impact on the
- the Company’s performance creates and enhances an asset that the customer controls as revenue of the Company. Therefore, the application of the constraint on variable consideration did not
the Company performs; or have any further impact on the revenue recognized by the Company.
- the Company’s performance does not create an asset with an alternative use to the Company
and the Company has an enforceable right to payment for performance completed to date.

b) Rendering of services

2019 2018
Revenue from a contract to provide services is recognized over time as the services are rendered. Note Rupees in ‘000

c) Interest income 8. PROPERTY, PLANT AND EQUIPMENT
Operating fixed assets 8.1 17,644,588 15,154,365
Capital work-in-progress 8.2 1,254,704 302,231
Interest income is recognized as interest accrues using the effective interest method. This is a 18,899,292 15,456,596
method of calculating the amortized cost of a financial asset and allocating the interest income
over the relevant period using the effective interest rate, which is the rate that exactly discounts 2018 - 19
Interloop Limited amount of the financial asset. Annual Report
estimated future cash receipts through the expected life of the financial asset to the net carrying

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