Capítulo 3. Empleo femenino en Argentina
3.2. Modelos de negocio
3.2.2. Emprendedor
The Company makes estimates, assumptions and significant judgements concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and judgements 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.
Accounting for long term contracts
The Company makes estimates and judgements concerning the future, particularly as regards long term contract profit taking, provision, arbitrations and claims. The resulting accounting estimates can, by definition, only approximate the actual results. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Share-based payments
The Group issues equity-settled share-based payments. Equity-settled share-based payments are measured at fair value at the date of the grant. The fair value and the vesting period uses management assumptions in their calculation.
While management believes the assumptions used are appropriate, a change in the assumptions used would impact the results of the Group.
Consolidation policy
The consolidated financial statements combine the financial statements of the individual entities comprising the Group.
The effects of all transactions between entities in the Group have been eliminated in full and the consolidated financial statements have been prepared using uniform accounting policies for like transactions and other events in similar circumstances.
Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies so as to obtain benefit from their activities. Subsidiaries are fully consolidated from the date on which control is transferred until the date that the control ceases.
The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group.
Revenue recognition
Revenue for services rendered is recognised as services are rendered. Revenue is not recognised when it cannot be measured reliably or where there are significant uncertainties regarding the recovery of the consideration due, associated costs or continuing management involvement with the services rendered.
Construction contracts
A construction contract is a contract specifically negotiated for the construction of an asset or a combination of assets that are closely interrelated or interdependent in terms of their design, technology and functions, or their ultimate purpose or use. Contract costs are recognised when incurred. When the outcome of the construction contract cannot be estimated reliably, contract revenue is recognised only to the extent of the contract expenses incurred that are likely to be recoverable. When the outcome of a construction contract can be estimated reliably and it is probable that the contract will be profitable, contract revenue is recognised using the percentage of completion method. When it is probable that the total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately. The Group uses the ‘percentage of completion method’ to determine the appropriate revenue to recognise in a given period. The stage of completion is measured with reference to the contract costs incurred up to the reporting date as a percentage of total estimated costs for each contract.
The Group presents as an asset the gross amounts due from customers for contract work for all contracts in progress for which costs incurred plus recognised profits (less recognised losses) exceed progress billings. Progress billings not yet paid by customers and retentions are included in trade and other receivables.
The Group presents as a liability (excess billings over work done) the gross amounts due to customers for contract work for all contracts in progress for which progress billings exceed costs incurred plus recognised profits (less recognised losses).
Leases
A distinction is made between finance leases which transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of the leased asset and operating leases under which the lessor retains substantially all the risks and rewards. Where an asset is acquired by means of a finance lease, the fair value of the leased property or the present value of minimum lease payments, if lower, is established as an asset at the beginning of the lease term.
A corresponding liability is also established and each lease payment is apportioned between the finance charge and the reduction of the outstanding liability. Operating lease rental expense is recognised as an expense on a straight line basis over the lease term, or on a systematic basis more representative of the time pattern of the user's benefit.
Taxation
The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case the tax is also recognised in other comprehensive income or directly in equity, respectively.
Deferred tax is provided using the liability method on temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying
Deferred tax is determined using tax rates enacted or substantively enacted at the balance sheet date and are expected to apply when the related deferred tax liability is settled. Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised.
Deferred tax liabilities are recognised for all taxable temporary differences, except in respect of taxable temporary differences associated with investments in subsidiaries 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.
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 deferred tax liabilities are offset if a legally enforceable right exists to set off current income tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
Impairment of assets
The Group assesses at each balance sheet date whether there is any indication that any of its assets have been impaired. If such indication exists, the asset's recoverable amount is estimated and compared to its carrying value.
Impairment losses are immediately recognised as an expense in the income statement, unless the relevant asset is carried at a revalued amount in which case the impairment loss is treated as a revaluation decrease. A reversal of an impairment loss is recognised immediately in the income statement, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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Translation of foreign currency transactions
Transactions in foreign currencies on initial recognition in the functional currency are recorded by applying to the foreign currency amount the spot exchange rate at the date of the transaction. At each balance sheet date:
a. foreign currency monetary items are reported using the closing rate; and
b. non-monetary items which are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.
Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were initially translated during the period are recognised in the income statement in the period in which they arise.
Translation of the financial statements of foreign operations
The following procedures are used in translating the results and financial position of the entity from its functional currency to the presentation currency:
a. assets and liabilities at the closing rate at the balance sheet date;
b. income and expense items at exchange rates at the dates of the transactions; and
c. all resulting exchange differences recognised as a separate component of equity.
Exchange differences arising on a monetary item that forms part of the net investment in a foreign operation are recognised initially in a separate component of equity and recognised in profit or loss on disposal of the net investment.
Trade and other receivables
Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairments.
Interest income is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.
Property, plant and equipment
These assets are stated at cost and are depreciated on the straight-line basis at annual rates considered appropriate to reduce book values to estimated residual values over the remaining useful lives as follows:
Residual values and useful economic lives are reassessed on an annual basis.
Intangible assets
Intangible assets are stated at cost less accumulated amortisation and any possible impairment losses. The intangible asset is amortised over 10 years on the straight line method and charged to the income statement.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and other short-term highly liquid investments that are convertible to a known amount of cash.
Trade and other payables
Trade accounts, notes payable, other payables and accrued liabilities represented the principal amounts outstanding at balance sheet date plus, where applicable, any accrued interest.
Short-term employee benefits
Short term employee benefits are employee benefits (other than termination benefits and equity compensation benefits) which fall due wholly within 12 months after the end of the period in which employee services are rendered.
Computer equipment - 33.3% Furniture and fittings - 16.67%
Leasehold improvements - over period of lease
Motor vehicles - 20%
Office equipment - 20%
Plant and equipment - 20%
They comprise wages, salaries, social security obligations, short-term compensation absences, profit sharing and bonuses payable within 12 months and non- mandatory benefits such as medical care, housing, car, and service goods.
The undiscounted amount of short-term employee benefits expected to be paid is recognised as an expense.
Share-based payment arrangements
Goods or services received or acquired in a share-based payment transaction are recognised as an increase in equity if the goods or services were received in an equity- settled share-based payment transaction or as a liability if the goods and services were acquired in a cash settled share-based payment transaction.
For equity-settled share-based transactions, goods or services received are measured directly at the fair value of the goods or services received provided this can be estimated reliably.
If a reliable estimate cannot be made the value of the goods or services is determined indirectly by reference to the fair value of the equity instrument granted. The Black - Scholes model is used in the determination of the fair value at the date of measurement for equity-settled share-based transactions.
Transactions with employees and others providing similar services are measured by reference to the fair value at grant date of the equity instrument granted and are charged to the income statement over the vesting period of the equity instrument.
Provisions
Provisions are recognised in the balance sheet when there is a present legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation.
Segmental Reporting
IFRS 8 Operating Segments requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segments and to assess their performance.
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Notes to the financial statements continued...
3 Property, plant and equipment
Year Ended March 2013 Year Ended March 2012 US$ US$ Computer equipment Cost 1 082 787 892 116 Accumulated depreciation (658 804) (562 448)
Net book value 423 983 329 668
Furniture and fittings
Cost 256 294 235 012
Accumulated depreciation (118 370) (97 366)
Net book value 137 924 137 646
Lease improvements
Cost 185 968 130 912
Accumulated depreciation (76 556) (55 587)
Net book value 109 412 75 325
Motor vehicles
Cost 232 377 258 524
Accumulated depreciation (129 234) (102 553)
Net book value 103 143 155 971
Office equipment
Cost 90 407 95 806
Accumulated depreciation (57 525) (61 267)
Net book value 32 882 34 539
Plant and equipment
Cost 5 737 5 673
Accumulated depreciation (4 554) (4 799)
Net book value 1 183 874
Total property, plant and equipment
Aggregate cost 1 853 570 1 618 043
Aggregate accumulated depreciation (1 045 043) (884 020)
Notes to the financial statements continued...
3 Property, plant and equipment (continued)
2013 Net book
value 1 April
2012 US$
Additions Disposals Depreciation Translation
reserve Net book value 31 March
2013 US$ Computer equipment 329 668 343 887 (1 823) (209 088) (38 661) 423 983 Furniture and fittings 137 646 61 164 - (40 790) (20 096) 137 924 Leasehold improvements 75 325 77 272 - (33 047) (10 138) 109 412 Motor vehicles 155 971 17 726 - (47 919) (22 635) 103 143 Office equipment 34 539 10 859 - (7 219) (5 297) 32 882
Plant and equipment 874 1 027 - (619) (99) 1 183
Total 734 023 511 935 (1 823) (338 682) (96 926) 808 527 2012 Net book value 1 April 2011 US$
Additions Disposals Depreciation Translation reserve Net book value 31 March 2012 US$ Computer equipment 166 458 370 209 (15 056) (135 726) (56 217) 329 668 Furniture and fittings 86 074 103 891 - (30 951) (21 368) 137 646 Leasehold improvements 60 935 57 662 - (30 272) (13 000) 75 325 Motor vehicles 222 597 126 610 (146 312) (45 430) (1 494) 155 971 Office equipment 44 097 24 320 (6 001) (21 273) (6 604) 34 539
Plant and equipment 2 172 - - (1 074) (224) 874
Total 582 333 682 692 (167 369) (264 726) (98 907) 734 023
Some of the motor vehicles are encumbered (refer to note 12)
Year Ended 31 March 2013 Year Ended 31 March 2012 US$ US$ 4 Intangible assets
Designs and processes
Balance at the beginning of the year 31 459 43 006
Amortisation (5 874) (6 707)
Translation difference (4 869) (4 840)
Balance at the end of the year 20 716 31 459
5 Deferred tax
Deferred tax assets
Temporary timing differences 848 862 1 187 385
The components of the deferred tax asset are:
General provisions 807 339 945 789
Deferred construction income 2 880 194 344
Other 38 643 47 252
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Notes to the financial statements continued...
Year Ended 31 March 2013 Year Ended 31 March 2012 US$ US$
5 Deferred tax (continued)
Reconciliation of deferred tax assets
Balance at the beginning of the year 1 187 385 1 694 317
Charge for the year (152 755) (317 819)
Translation difference (185 768) (189 113)
Balance at the end of the year 848 862 1 187 385
The above deferred tax assets have been recognised as management are of the opinion that the Group will generate adequate future profits against which these deferred tax assets can be reversed.
Deferred tax liability
The components of the deferred tax liability are:
Unremitted distributable reserves of subsidiaries 910 011 - Reconciliation of deferred tax liabilities
Balance at the beginning of the year - -
Charge for the year 989 181 -
Translation difference (79 170) -
Balance at the end of the year 910 011 -
At 31 March 2013 the South Africa subsidiary had distributable reserves totaling US$ 17 306 750 (2012: US$ 11 380 438). An amount of US$ 910 011 (2012: US$ nil) has been provided in respect of the distributable reserves that are expected to be paid in the foreseeable future. If the remainder of the reserves were to be distributed a further amount of US$ 1 686 002 (2012: US$ 1 707 066) would be payable. No provision has been made for this additional amount as MDM Engineering Group Limited has control over the timing of the distribution and no payment is likely in the foreseeable future.
6 Trade and other receivables
Trade receivables 23 182 244 24 011 106
Prepayments 150 884 287 426
Other 858 026 825 026
24 191 154 25 123 558 Provision for impairment of debtors
Opening balance - -
Provided for in the year 124 801 -
Translation difference - -
Closing balance 124 801 -
7 Cash and cash equivalents
Bank balances 18 965 514 9 138 611
Short term deposits 15 621 960 19 968 620
Cash on hand 10 454 11 084
34 597 928 29 118 315 Included in the cash and cash equivalents is a restricted amount of US$ 4 966 046 (2012: US$ 848 911) which is placed as a guarantee with a South African financial institution against which either performance or retention bonds are issued on certain projects.