Page 112 - InterloopAnnualReport2021

NOTES TO THE

FINANCIAL STATEMENTS

For the year ended June 30, 2021

6.21 Earnings per share
The Company presents basic and diluted earnings per share (EPS) for its ordinary shares. Basic EPS is
calculated by dividing the profit by weighted average number of shares outstanding during the period.
Diluted EPS is calculated by adjusting for the effects of all dilutive potential ordinary shares.

6.22 Dividend
Dividend distribution to the Company’s shareholders is recognized as a liability in the Company’s
financial statements in the period in which dividends are approved.

6.23 Segment reporting
Segment reporting is based on the operating (business) segments of the Company. An operating
segment is a component of the Company that engages in business activities from which it may earn
revenues and incur expenses, including revenues and expenses that relate to the transactions with any
of the Company’s other components. An operating segment’s operating results are reviewed regularly
by the chief operating decision maker (‘CODM’) to make decisions about resources to be allocated
to the segment and assess its performance, and for which discrete financial information is available.
The CODM, who is responsible for allocating resources and assessing performance of the operating
segments, has been identified as the Board of Directors of the Company that makes the strategic
decisions.

Segment results that are reported to the CODM include items directly attributable to a segment as well
as those that can be allocated on a reasonable basis. Those incomes, expenses, assets, liabilities and
other balances which cannot be allocated to a particular segment on a reasonable basis are reported as
unallocated.

Transactions among the business segments are recorded at cost. Inter segment sales and purchases are
eliminated from the total.

6.24 Related party transactions
All transactions with related parties are carried out at arm’s length prices. Each transaction is evaluated
to be characterized as an “”arm’s length transaction”” and approximated to the arm’s length criteria
using one of the following methodologies:

• Market-based pricing
• Negotiated pricing
• Cost-based pricing

6.25 Financial Instruments:
6.25.1 Financial assets
A financial asset is measured at amortized cost if it is held in order to collect contractual cash flows which
arise on specified dates and that are ‘solely payment of principal and interest (SPPI)’ on the principal
amount outstanding. A debt investment is measured at fair value through other comprehensive income
if it is held in order to collect contractual cash flows which arise on specified dates that are solely
principal and interest and as well as selling the asset on the basis of its fair value. All other financial assets
are classified and measured at fair value through profit or loss unless the Company makes an irrevocable
election on initial recognition to present gains and losses on equity instruments in other comprehensive
income. Despite these requirements, a financial asset may be irrevocably designated as measured at fair
value through profit or loss to reduce the effect of, or eliminate, an accounting mismatch.

A. Classification and measurement of financial assets
Investments and other financial assets
Classification:
The Company classifies its financial assets in the following measurement categories:

– those to be measured subsequently at fair value (either through other comprehensive income, or
through profit or loss), and
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