Final Sameer Annual Report 2010 - Sameer Africa Limited

Notes to the consolidated financial statements
for the year ended 31 december 2010
1. REPORTING ENTITY
Sameer Africa Limited is a limited liability company incorporated in Kenya under the Kenyan Companies Act, and is
domiciled in Kenya. The consolidated financial statements of the company as at and for the year ended 31 December
2010 comprise the company and its subsidiaries (together referred to as the “Group”). The Group primarily is involved in
the manufacture, importation and sale of tyres and letting of premises in an export processing zone. The address of its
registered office is as follows:
LR No. 12081
Mombasa Road
PO Box 30429 - 00100
Nairobi
2. BASIS OF PREPARATION
(a) Statement of compliance
The consolidated financial statements are prepared in accordance with and comply with International Financial Reporting
Standards (IFRS).
(b) Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis as modified by revaluation of certain
property, plant and equipment and investment property.
(c) Functional and presentation currency
Items included in the consolidated financial statements of each of the Group’s entities are measured using the currency
of the primary economic environment in which the entity operates (“the functional currency”). The consolidated financial
statements are presented in Kenya shillings (KShs), which is the Group’s functional and presentation currency.
(d) Use of estimates and judgement
The preparation of financial statements in conformity with International Financial Reporting Standards requires management
to make judgement, estimates and assumptions that affect the application of policies and reported amounts of assets and
liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reported period. The estimates and assumptions are based on the Directors’ best
knowledge of current events, actions historical experience and various other factors that are believed to be reasonable
under the circumstances, the results of which form the basis of making the judgements about the carrying values of assets
and liabilities are not readily apparent from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period which the estimate is revised if the revision affects only that period or in the period of the revision
and future periods if the revision affects both current and future periods.
In particular, information about significant areas of estimation and critical judgments in applying accounting policies that
have the most significant effect on the amounts recognised in the financial statements are described in Note 6.
3. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently to all periods presented in these financial statements.
(a) Consolidation
(i) Subsidiaries
Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies generally
accompanying a shareholding of more than one half of the voting rights. Subsidiaries are fully consolidated from the date
on which control is transferred to the Group. They are de-consolidated from the date the control ceases.
SAMEER Annual Report 2010 23