TPCC Annual Report 2008.indd - HeidelbergCement
TPCC Annual Report 2008.indd - HeidelbergCement TPCC Annual Report 2008.indd - HeidelbergCement
Tanzania Portland Cement Company Ltd, Annual Report 2008 Post-employment obligations: Under defined benefit plans, the Company provides certain post-retirement benefits at retirement and at certain milestones during the period of employment. The expected costs of these benefits are accrued over the period of employment and the present value of the obligation is determined by using the weighted-average cost of capital rate applicable at each reporting date. These benefits are unfunded. The cost of providing benefits under the defined benefit plans is determined separately for each plan using the projected unit credit actuarial valuation method. Actuarial gains and losses are recognised as income or expense when the net cumulative unrecognised actuarial gains and losses for each individual plan at the end of the previous reporting period exceeded 10% of the higher of the defined benefit obligation and the fair value of plan assets at that date. These gains or losses are recognised over the expected average remaining working lives of the employees participating in the plans. The past service cost is recognised as an expense on a straight line basis over the average period until the benefits be- come vested. If the benefits are already vested immediately following the introduction of, or changes to, a pension plan, past service cost is recognized immediately. The defined benefit liability comprises the present value of the defined benefit obligation less past service cost not yet recognised. Bonus plans: The Company recognizes a liability and expense for bonuses based on a formula that takes into account, the profit attributable to the Company’s shareholders. The Company recognizes a provision for bonuses when there is a contractual obligation or a past practice that has created a constructive obligation. Termination benefits: Termination benefits are payable when employment is terminated by the Company before the normal retirement date or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Company recognizes termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal, or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than twelve months after balance sheet date are discounted to present value. Taxes Current tax: Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance sheet date. Deferred tax: Deferred tax is provided on temporary differences at the balance sheet date between the tax bases of as- sets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax liabilities are recognised for all taxable temporary differences, except: • where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a trans- 40 action that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and
Tanzania Portland Cement Company Ltd, Annual Report 2008 • in respect of taxable temporary differences associated with investments in subsidiaries and associates, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible tem- porary differences, and the carry forward of unused tax credits and unused tax losses can be utilised except: • where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and • in respect of deductible temporary differences associated with investments in subsidiaries and associates, de- ferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each balance sheet date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date. Current tax and deferred tax relating to items recognised directly in equity are also recognised in equity and not in the income statement. Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority. Value added tax: Revenues, expenses and assets are recognised net of the amount of value added tax except: • where the value added tax incurred on a purchase of assets or services is not recoverable from the taxation au- thority, in which case the value added tax is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and • receivables and payables that are stated with the amount of value added tax included. The net amount of value added tax recoverable from, or payable to, the taxation authority is included as part of receiva- bles or payables in the balance sheet. 6. Significant accounting judgments, estimates and assumptions The preparation of the Company’s financial statements requires management to make judgments, estimates and as- sumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of con- 41
- Page 1 and 2: Tanzania Portland Cement Company Li
- Page 3 and 4: Table of contents Tanzania Portland
- Page 5 and 6: Kwa Wanahisa, TANZANIA PORTLAND CEM
- Page 7 and 8: Maelezo mafupi ya Mwenyekiti Tanzan
- Page 9 and 10: Administrative costs were affected
- Page 11 and 12: kutokana na uagizaji wa klinka kuto
- Page 13 and 14: Mradi wa Upanuzi Mradi wa upanuzi w
- Page 15 and 16: Tanzania Portland Cement Company Lt
- Page 17 and 18: Tanzania Portland Cement Company Lt
- Page 19 and 20: Taarifa Muhimu za Kampuni Eneo la s
- Page 21 and 22: Directors’ remuneration Tanzania
- Page 23 and 24: Tanzania Portland Cement Company Lt
- Page 25 and 26: Malipo kwa Wakurugenzi Tanzania Por
- Page 27 and 28: Walemavu Tanzania Portland Cement C
- Page 29 and 30: Tanzania Portland Cement Company Lt
- Page 31 and 32: Balance sheet Tanzania Portland Cem
- Page 33 and 34: Cash flow statement Tanzania Portla
- Page 35 and 36: IFRS 8 Operating Segments Tanzania
- Page 37 and 38: Revenue recognition Tanzania Portla
- Page 39 and 40: Tanzania Portland Cement Company Lt
- Page 41: Tanzania Portland Cement Company Lt
- Page 45 and 46: Tanzania Portland Cement Company Lt
- Page 47 and 48: IFRIC 16 Hedges of a Net Investment
- Page 49 and 50: 13. Administrative expenses Tanzani
- Page 51 and 52: 20. Inventories Tanzania Portland C
- Page 53 and 54: 25. Other borrowings Tanzania Portl
- Page 55 and 56: Tanzania Portland Cement Company Lt
- Page 57 and 58: 29. Related party transactions Tanz
- Page 59 and 60: 33. Incorporation The Company is in
- Page 61 and 62: Tanzania Portland Cement Company Lt
- Page 63 and 64: • • • • • • • • •
- Page 65 and 66: • • • • • • • • •
- Page 68: Tanzania Portland Cement Company Lt
Tanzania Portland Cement Company Ltd, <strong>Annual</strong> <strong>Report</strong> 2008<br />
Post-employment obligations: Under defined benefit plans, the Company provides certain post-retirement benefits at<br />
retirement and at certain milestones during the period of employment. The expected costs of these benefits are accrued<br />
over the period of employment and the present value of the obligation is determined by using the weighted-average<br />
cost of capital rate applicable at each reporting date.<br />
These benefits are unfunded. The cost of providing benefits under the defined benefit plans is determined separately for<br />
each plan using the projected unit credit actuarial valuation method. Actuarial gains and losses are recognised as income<br />
or expense when the net cumulative unrecognised actuarial gains and losses for each individual plan at the end of the<br />
previous reporting period exceeded 10% of the higher of the defined benefit obligation and the fair value of plan assets<br />
at that date. These gains or losses are recognised over the expected average remaining working lives of the employees<br />
participating in the plans.<br />
The past service cost is recognised as an expense on a straight line basis over the average period until the benefits be-<br />
come vested. If the benefits are already vested immediately following the introduction of, or changes to, a pension plan,<br />
past service cost is recognized immediately.<br />
The defined benefit liability comprises the present value of the defined benefit obligation less past service cost not yet<br />
recognised.<br />
Bonus plans: The Company recognizes a liability and expense for bonuses based on a formula that takes into account,<br />
the profit attributable to the Company’s shareholders. The Company recognizes a provision for bonuses when there is a<br />
contractual obligation or a past practice that has created a constructive obligation.<br />
Termination benefits: Termination benefits are payable when employment is terminated by the Company before the<br />
normal retirement date or whenever an employee accepts voluntary redundancy in exchange for these benefits. The<br />
Company recognizes termination benefits when it is demonstrably committed to either terminating the employment<br />
of current employees according to a detailed formal plan without possibility of withdrawal, or providing termination<br />
benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than twelve months<br />
after balance sheet date are discounted to present value.<br />
Taxes<br />
Current tax: Current tax assets and liabilities for the current and prior periods are measured at the amount expected to<br />
be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those<br />
that are enacted or substantively enacted by the balance sheet date.<br />
Deferred tax: Deferred tax is provided on temporary differences at the balance sheet date between the tax bases of as-<br />
sets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax liabilities are recognised for<br />
all taxable temporary differences, except:<br />
• where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a trans-<br />
40<br />
action that is not a business combination and, at the time of the transaction, affects neither the accounting<br />
profit nor taxable profit or loss; and
Change language