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NOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTS

For the year ended June 30, 2020

3.2 Basis of measurement
These consolidated financial statements have been prepared under the historical cost convention except as
otherwise stated in respective policy notes.

3.3 Functional and presentation currency
These consolidated financial statements are presented in Pakistani Rupee which is also the group’s functional
currency.

4. NEW AND REVISED STANDARDS, INTERPRETATIONS AND PRONOUNCEMENTS
4.1 Standards, interpretations and amendments to approved accounting standards which became effective
during the year

– Amendment to IAS 19 ‘Employee Benefits, – Plan Amendment, Curtailment or Settlement’:
The amendments to IAS 19 specify that an entity must;
(i) determine current service cost for the remainder of the period after the plan amendment, curtailment or
settlement using the actuarial assumptions used to remeasure the net defined benefit liability (asset)
reflecting the benefits offered under the plan and the plan assets after that event and determine net
interest for the remainder of the period after the plan amendment, curtailment or settlement using:

(a) the net defined benefit liability (asset) reflecting the benefits offered under the plan and the plan
assets after that event; and

(b) the discount rate used to remeasure that net defined benefit liability (asset).

(ii) determine any past service cost, or a gain or loss on settlement, without considering the effect of the
asset ceiling. This amount is to be recognized in profit or loss. An entity then determine the effect of the
asset ceiling after the plan amendment, curtailment or settlement. Any change in that effect, excluding
amounts included in net interest, is recognized in other comprehensive income.
The amendments do not have any significant impact on these consolidated financial statements.

– Amendment to IAS 28 ‘Investments in Associates and Joint Ventures’ – Long term investment in
Associates and Joint Ventures:
The amendment will affect companies that finance such entities with preference shares or with loans for
which repayment is not expected in the foreseeable future (referred to as long–term interests or ‘LTI’). The
amendment and accompanying example state that LTI are in the scope of both IFRS 9 and IAS 28 and
explain the annual sequence in which both standards are to be applied. The amendments do not have any
impact on these consolidated financial statements.

– Amendment to IFRS 9 ‘Financial Instrument’– prepayment Features with Negative Compensation
and modifications of financial liabilities:
The amendment allow debt instruments with negative compensation prepayment features to be measured
at amortized cost or fair value through other comprehensive income. The amendment also clarified that
gains and losses arising on modifications of financial liabilities that do not result in derecognition should
be recognized in profit or loss. The amendments do not have any impact on these consolidated financial
statements.

– IFRS 16, ‘Leases’:
IFRS 16 introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities
for all leases with a term of more than 12 months, unless the underlying asset is of low value. A lessee is
required to recognize a right–of–use asset representing its right to use the underlying leased asset and a

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