Annual Report - QuamIR

Notes to the Consolidated Financial Statements (Continued)
2 Summary of significant accounting policies (Continued)
2.20 Borrowing costs
General and specific borrowing costs directly attributable to the
acquisition, construction or production of qualifying assets, which
are assets that necessarily take a substantial period of time to
get ready for their intended use or sale, are added to the cost of
those assets, until such time as the assets are substantially ready
for their intended use or sale.
2
2.20
Investment income earned on the temporary investment of
specific borrowings pending their expenditure on qualifying assets
is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in profit or loss in the
period in which they are incurred.
Borrowing costs incurred for the construction of any qualifying
asset are capitalised during the period of time that is required
to complete and prepare the asset for its intended use. Other
borrowing costs are expensed.
2.21 Cash and cash equivalents
In the consolidated cash flow statement, cash and cash
equivalents include cash in hand, deposits held at call with
banks, other short-term highly liquid investments with original
maturities of three months or less, and bank overdrafts. Bank
overdrafts are shown within borrowings in current liabilities on the
consolidated balance sheet.
2.22 Share capital
Ordinary shares are classified as equity. Incremental costs
directly attributable to the issue of new shares or options are
shown in equity as a deduction, net of tax, from the proceeds.
2.21
2.22
Where any group company purchases the company’s equity
share capital (treasury shares), the consideration paid, including
any directly attributable incremental costs (net of income taxes) is
deducted from equity attributable to owners of the company until
the shares are cancelled or reissued. Where such ordinary shares
are subsequently reissued, any consideration received, net of any
directly attributable incremental transaction costs and the related
income tax effects, is included in equity attributable to owners of
the company.
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