A Time To Build Caribbean Cement Company Limited Annual ...

CARIBBEAN CEMENT COMPANY
AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements
Year ended 31 December 2004
(Expressed in Jamaican Dollars)
2. Signifi
cant accounting policies (Continued)
i] Employee benefi
ts
The Group has a defi
ned contribution pension scheme for
all perm
anent
employees. This scheme is managed by an outside agency. The Group’s liabi
lity
is limited to its contributions which are accounted for
on the accrual basis and
charged to the statement of earnings in the period to which they relate.
j] Revenue recognition
Revenue is recognised when the signifi
cant risk and rewards of ownership of
goods have been passed to the buyers and the amounts of revenue can be
measured reliabl
y.
Rental and interest income are recognised as they are accrued unless collectabi
lity
is in doubt.
k] Receivables and payables
Trade receivabl
es are carried at anticipated realisablabl
e value. A provision is made
for
doubtful
receivabl
es based on a review of outstanding amounts at the year end.
Liabilities for
trade and other accounts payable, which are normally settled on 30
to 90 days terms, are recorded at amounts representing the fa
ir value of the
consideration to be paid in the fut
ure fo
r goods and services received by the
balance sheet date, whether or not billed.
l] Net cash and cash equivalents
Net cash and cash equivalents comprise cash at bank and in hand and short-term
deposits with an original maturity of three months or less, net of bank advances.
CARIBBEAN CEMENT COMPANY
AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements
Year ended 31 December 2004
(Expressed in Jamaican Dollars)
2. Signifi
cant accounting policies (Continued)
p] Operating leases
Leases of assets under which all the risks and benefi
ts of ownership ar
e eff
fe
ctively
retained by the lessor are classifi
ed as operating leases. Payments made under
operating leases are charged to the statement of earnings on a straight-line basis
over the period of the lease.
q] Defe
rred expenditures
The costs of installed refr
actories, chains and grinding media are amortised over a
period of six to twelve months to match the estimated period of their economic
useful
ness.
r] Comparative infor
mation
Where necessary, comparative fi
gures have been reclassifi
ed and/or restated to
confor
m with changes in presentation in the curr
ent year.
Equity investments in subsidiaries, classifi
ed as long-term, are stated at cost.
A segment is a distinguishabl
e component of the Group that is engaged either in
providing an individual product or service or a group of related products or
services that is subject to risks and returns that are diff
fe
rent fr
om those of other
segments. The Directors are of the view that there are no material segments into
which the Group’s business should be disclosed.
m] Earnings per stock unit
The earnings per stock unit is computed by dividing profi
t attrtr
ibutabl
e to ordinary
stockholders by the weighted average number of ordinary stock units in issue
during the year.
n] Use of estimates
The preparation of the fi
nancial statements in confor
mity with IFRS requires
management to make estimates and assumptions that aff
fe
ct the amounts reported
in the fi
nancial statements and accompanying notes. Actual results could diff
fe
r
fr
om these estimates.
o] Provisions
Provisions are recognised when the Group has a present legal or constructive
obligation as a result of past events, it is probabl
e tha
t an outfl
ow of resources will
be required to settle the obligation, and a reliabl
e estimate of the amount can be
made.
2004 ANNUAL REPORT
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2004 ANNUAL REPORT