NOTES TO THE FINANCIAL STATEMENTS
FOR THE FInAncIAL yEAR EnDED 30 JunE 2016
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
x)
Dividends
Interim dividends are recorded during the financial year in which they are declared payable. Final
dividends are recorded in the financial statements in the period in which they are approved by the
Company’s shareholders.
y)
Cash and cash equivalents
For the purposes of presentation in the statement of cash flows, cash and cash equivalents comprise cash
on hand, deposits with financial institutions which are readily convertible and subject to an insignificant
risk of change in value excludes pledged deposits.
z)
Related parties
Related parties refer to companies which are controlled by the Group’s key management personnel and
a major corporate shareholder.
aa)
Segment reporting
An operating segment is a component of the Group that engages in business activities from which it
may earn revenues and incurs expenses, including revenues and expenses that relate to transactions
with other components of the Group. Operating segments are reported in a manner consistent with the
internal reporting provided to the Group’s chief operating decision maker for making decisions about
allocating resources and assessing performance of the operating segments.
bb)
Key source of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the end of
the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year, are discussed below.
Impairment of loans and receivables
The Group assesses at each reporting date whether there is any objective evidence that a financial
asset is impaired. To determine whether there is objective evidence of impairment, the Group considers
factors such as the probability of insolvency or significant financial difficulties of the debtor and default
or significant delay in payments.
Where there is objective evidence of impairment, the amount and timing of future cash flows are
estimated based on historical loss experience for assets with similar credit risk characteristics.
The carrying amounts of the Group’s loans and receivables at the reporting date are disclosed in
note 30(a) to the financial statements.
79
ISOTEAM LTD.
ANNUAL REPORT 2016
