May & Baker Nig Plc RC. 558
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED '31ST DECEMBER, 2024
1
UNAUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31ST DECEMBER, 2024.
The Group | The Company | |||||||||
3 Months to | 12 Months | 3 Months to | 12 Months | 3 Months to | 12 Months | 3 Months to | 12 Months | |||
December, 2024 | December, 2024 | December, 2023 | December, 2023 | December, 2024 | December, 2024 | December, 2023 | December, 2023 | |||
Note | N'000 | N'000 | N'000 | N'000 | N'000 | N'000 | N'000 | N'000 | ||
Continuing operations | ||||||||||
Revenue | 5 | 7,083,537 | 28,905,152 | 5,393,744 | 19,695,464 | 6,615,928 | 26,492,521 | 4,869,215 | 18,370,206 | |
Cost of sales | (5,501,583) | (20,563,617) | (3,532,951) | (13,114,231) | (5,183,611) | (19,047,906) | (3,303,766) | (12,590,269) | ||
Gross profit | 1,581,955 | 8,341,535 | 1,860,793 | 6,581,233 | 1,432,318 | 7,444,615 | 1,565,449 | 5,779,937 | ||
Other operating income/(Loss) | 7 | 18,961 | (87,231) | 104,549 | 62,209 | 2,045 | (125,036) | 18,118 | 62,209 | |
Distribution, sales and marketing expense | (1,043,995) | (3,257,720) | (864,607) | (2,566,660) | (905,651) | (2,871,159) | (724,955) | (2,281,081) | ||
Administrative expenses | (707,866) | (2,257,759) | (807,022) | (2,707,420) | (692,823) | (2,194,002) | (619,543) | (2,458,396) | ||
Operating profit/(loss) | ||||||||||
(150,946) | 2,738,825 | 293,713 | 1,369,362 | (164,112) | 2,254,418 | 239,069 | 1,102,669 | |||
Interest income | 8 | 151,701 | 407,491 | 161,446 | 383,552 | 139,861 | 367,215 | 153,750 | 375,834 | |
Finance costs | 10 | (181,881) | (542,583) | (44,605) | (290,374) | (157,259) | (453,983) | (34,448) | (254,074) | |
Share of proft/( Loss) of Joint Venture | 17 | 12,666 | 4,088 | 62,176 | 56,996 | - | - | - | - | |
Profit/(Loss) before tax | (168,460) | 2,607,820 | 472,729 | 1,519,536 | (181,510) | 2,167,649 | 358,370 | 1,224,429 | ||
Current tax expense | 13.1 | 53,907 | (915,289) | (101,539) | (436,517) | 46,392 | (786,126) | (78,427) | (355,566) | |
Profit for the year | ||||||||||
11 | (114,553) | 1,692,531 | 371,191 | 1,083,019 | (135,118) | 1,381,524 | 279,943 | 868,863 | ||
Other comprehensive income: | ||||||||||
Items that will not be reclassified | ||||||||||
Asset revaluation gain net of tax | - | - | - | - | - | - | ||||
Total comprehensive income | (114,553) | 1,692,531 | 371,191 | 1,083,019 | (135,118) | 1,381,524 | 279,943 | 868,863 | ||
Earnings per share | 14. | |||||||||
Basic (kobo per share) from continuing operation | (6.64) | 98.10 | 21.52 | 62.78 | (7.83) | 80.08 | 16.23 | 50.36 | ||
Diluted (kobo per share) from continuing operation | (6.64) | 98.10 | 21.52 | 62.78 | (7.83) | 80.08 | 16.23 | 50.36 | ||
All the profit of the Group is attributable to Owners of the company as there are no non-controlling interests. | ||||||||||
The accompanying notes form an integral part of these consolidated financial statements. |
2
MAY & BAKER NIGERIA PLC
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31ST December, 2024
The Group | The Company | ||||
December | December | December | December | ||
2024 | 2023 | 2024 | 2023 | ||
Note | N'000 | N'000 | N'000 | N'000 |
ASSETS | |
Non-current assets | |
Property, plant and equipment | 16 |
Intangible assets | 15 |
Right of use assets | |
Investment in Joint Venture | 17 |
Investment in subsidiaries | 18 |
Asset held for sale | 19 |
Total non-current assets | |
Current assets | |
Inventories | 20 |
Trade and other receivables | 21 |
Other assets | 23 |
Cash and cash equivalents | 22 |
5,964,355 | 5,421,064 |
13,234 | 7,288 |
- | |
1,202,643 | 1,198,555 |
- | - |
- | - |
7,180,232 | 6,626,907 |
8,053,686 | 6,508,090 |
1,643,597 | 1,092,911 |
2,161,789 | 2,771,064 |
3,263,888 | 3,383,363 |
5,903,244 5,321,048
13,1497,143
-
1,326,886 1,326,886
3,0003,000
--
7,246,279 6,658,077
7,348,883 6,430,497
1,396,625 1,016,734
1,928,883 2,625,601
3,161,164 2,997,678
Total current assets |
Total assets |
Equity and Liabilities |
15,122,960 | 13,755,428 | 13,835,555 | 13,070,510 | |
22,303,193 | 20,382,335 | 21,081,834 | 19,728,587 | |
Share capital | 24 |
Share premium account | 25 |
Retained earnings | 26 |
Asset revaluation reserve | 26.1 |
Total equity | |
Non-current liabilities | |
Borrowings | 27 |
Employee benefits | 29 |
Deferred Income | 30 |
Deferred tax liabilities | 13 |
Total non-current liabilities
Current liabilities
862,617 862,617
3,012,065 3,012,065
5,681,876 4,506,915
408,144 408,144
9,964,702 8,789,741
1,199,390 1,519,334
32,83432,587
186,491 257,110
986,486 986,482
2,405,200 2,795,513
862,617 862,617
3,012,065 3,012,065
5,056,147 4,192,193
408,144 408,144
9,338,973 8,475,019
1,199,390 1,519,334
32,834 32,587
186,491 257,110
971,688 971,688
2,390,402 2,780,719
Trade and other payables | 28 | 5,368,850 | 3,200,657 | 5,249,902 | 3,023,118 | |
Current tax liabilities | 13 | 932,178 | 299,042 | 802,308 | 225,769 | |
Borrowings | 27 | 3,548,805 | 5,139,783 | 3,216,793 | 5,066,362 | |
Deferred Income | 30 | 83,456 | 157,600 | 83,456 | 157,600 | |
Total current liabilities | 9,933,290 | 8,797,082 | 9,352,459 | 8,472,849 | |
Total liabilities | 12,338,490 | 11,592,595 | 11,742,862 | 11,253,568 | |
Total equity and liabilities | 22,303,192 | 20,382,336 | 21,081,835 | 19,728,587 |
Mr. Ayodeji S. Aboderin | Mr. Patrick Ajah |
Finance Director/CFO | Managing Director/CEO |
FRC/2014/ICAN/00000008270 | FRC/2021/003/00000023215 |
These Financial Statements were approved by the Board on 28 January 2025 (Lagos)
3
MAY & BAKER NIGERIA PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST DECEMBER, 2024.
Share | ||||||||
Share | premium | Retained | Revaluation | |||||
capital | account | earnings | Surplus | Total | ||||
N'000 | N'000 | N'000 | N'000 | N'000 | ||||
Equity attributable to equity | ||||||||
holders of the Group | ||||||||
At 1 January 2023 | 862,617 | 3,012,065 | 3,961,830 | 408,144 | 7,271,616 | |||
Right issue | - | - | - | |||||
Profit for the period | - | 1,083,019 | - | 1,083,019 | ||||
Dividends paid | - | - | (517,570) | - | (517,570) | |||
- | - | - | - | - | ||||
At 31ST DECEMBER, 2023 | 862,617 | 3,012,065 | 4,527,279 | 408,144 | 7,837,065 | |||
At 1 January 2024 | 862,617 | 3,012,065 | 4,506,915 | 408,144 | 8,789,741 | |||
Right Issue | - | - | - | |||||
Adjustment | - | - | - | |||||
Profit for the period | - | - | 1,692,531 | - | 1,692,531 | |||
Dividends paid | - | - | (517,570) | - | (517,570) | |||
At 31ST DECEMBER, 2024 | ||||||||
862,617 | 3,012,065 | 5,681,876 | 408,144 | 9,964,702 | ||||
- | ||||||||
Equity attributable to equity | ||||||||
holders of the Company | ||||||||
At 1 January 2023 | 862,617 | 3,012,065 | 3,840,900 | 408,144 | 7,159,340 | |||
Right issue | - | - | - | - | - | |||
Profit for the Period | - | - | 868,863 | - | 868,863 | |||
Dividends paid | - | - | (517,580) | - | (517,580) | |||
- | ||||||||
At 31ST DECEMBER, 2023 | 862,617 | 3,012,065 | 4,192,183 | 408,144 | 7,510,623 | |||
At 1 January 2024 | ||||||||
862,617 | 3,012,065 | 4,192,193 | 408,144 | 8,475,019 | ||||
Adjustment | ||||||||
- | - | - | - | |||||
Profit for the Period | - | - | 1,381,524 | - | 1,381,524 | |||
Dividends paid | - | - | (517,570) | - | (517,570) | |||
At 31ST DECEMBER, 2024 | 862,617 | 3,012,065 | 5,056,147 | 408,144 | 9,338,973 | |||
4
MAY & BAKER NIGERIA PLC
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31ST DECEMBER, 2024.
The Group | The Company | ||||
December | December | December | December | ||
2024 | 2023 | 2024 | 2023 | ||
N'000 | N'000 | N'000 | N'000 | ||
Cash flows from operating activities | |||||
Cash received from customers | 30,023,155 | 19,807,717 | 27,728,728 | 18,547,355 | |
Cash paid to suppliers and employees | (25,811,878) | (18,549,339) | (23,357,566) | (17,698,630) | |
Taxes paid | (282,153) | (534,308) | (209,587) | (511,119) | |
Net cash from operating activities | 3,929,124 | 724,070 | 4,161,575 | 337,606 | |
Cash flows from Investing activities | |||||
Proceed from contract manufacturing | 33,284 | - | 33,284 | - | |
Rent received | - | 30,000 | - | 30,000 | |
Other sundry income | 84,936 | - | 84,899 | - | |
Proceeds from sale of fixed assets | 13,637 | 56,847 | 12,651 | 56,847 | |
Interest received | 407,491 | 383,552 | 367,215 | 375,834 | |
Purchases of Intangible assets | (9,433) | - | (9,433) | - | |
Purchases of property, plant and equipment | (1,272,940) | (1,042,261) | (1,270,273) | (954,530) | |
Net cash used in investing activities | |||||
(743,025) | (571,862) | (781,657) | (491,849) | ||
Cash flows from financing activities | |||||
Dividends paid | (517,570) | (517,570) | (517,570) | (517,570) | |
Additions to/(Repayment of) import facility | (1,198,037) | 1,689,506 | (1,197,495) | 1,616,086 | |
Loan received | - | - | - | - | |
Loans repaid | (892,222) | (767,593) | (892,222) | (767,593) | |
Unclaimed dividend returned | 12,854 | 31,634 | 12,854 | 31,634 | |
Finance cost | (542,583) | (290,374) | (453,983) | (254,074) | |
Net cash used in financing activities | (3,137,558) | 145,603 | (3,048,416) | 108,483 | |
Net increase/(decrease) in cash and cash | |||||
48,541 | 297,811 | 331,502 | (45,760) | ||
Cash and cash equivalents at 1 January | 3,176,612 | 2,878,801 | 2,790,927 | 2,836,687 | |
Cash and cash equivalents at 31st Dec | |||||
3,225,153 | 3,176,612 | 3,122,429 | 2,790,927 | ||
Reconciliation of cash and bank balances to | |||||
cash and cash equivalents | |||||
Cash and bank balance | 3,263,888 | 3,383,363 | 3,161,164 | 2,997,678 | |
Bank overdrafts and commercial papers | (38,735) | (206,751) | (38,735) | (206,751) | |
3,225,153 | 3,176,612 | 3,122,429 | 2,790,927 |
5
MAY & BAKER NIGERIA PLC
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31ST DECEMBER, 2024.
Free Float Computation
Company Name: | May & Baker Nigeria Plc | |||||
Board Listed : | Main Board | |||||
Year End: | December | |||||
Reporting Period: | Quarter 4 Ended 31 December 2024 | |||||
Share Price at end of reporting period: | N9.4k (2022: N5.25K) | |||||
Shareholding Structure /Free Float Status | ||||||
Description | 31-Dec-24 | 31-Dec-23 | ||||
Unit | Percentage | Unit | Percentage | |||
Issued Share Capital | 1,725,234,886 | 100.00% | 1,725,234,886 | 100% | ||
Substantial Shareholdings (5% and above) | ||||||
T.Y.Holdings | 720,878,543 | 41.78% | 720,878,543 | 41.78% | ||
Onyishi Maduka Samuel | 266,564,690 | 15.45% | 266,564,690 | 15.45% | ||
Total Substantial Shareholdings | 987,443,233 | 57.24% | 987,443,233 | 57.24% | ||
Directors' Shareholdings (direct and indirect), excluding directors with substantial interest | ||||||
Senator Daisy Danjuma | Representing Oil Tech Nigeria Ltd | 14,874,759 | 0.86% | 14,874,759 | 0.86% | |
(Indirect) | Representing Osis Yuvic LtdOil Tech Nigeria Ltd) | 11,088,000 | 0.64% | 11,088,000 | 0.64% | |
Mr. Patrick Ajah | 2,000 | 0.0% | - | - | ||
Dr. E. Abebe (Direct) | 2,012,551 | 0.12% | 2,012,551 | 0.12 | ||
Dr. (Mrs.) Rahila Ilogbodu | - | 0.00% | - | 0.0% | ||
Dr. (Mrs.) Rahila Ilogbodu | Representing David Dankaro | - | - | 16,558,831 | 0.96% | |
Representing Maydav Multi Resources Ltd | 45,073,864 | 2.61 | 45,073,864 | 2.61% | ||
Mr. Michael C. Odumodu (Indi | Representing Seravac Nigeria Ltd | 54,134,958 | 3.14% | 54,134,958 | 3.14% | |
Representing J.I. Odumodu | 3,617,198 | 0.21% | 3,617,198 | 0.21% | ||
V.C. Okelu | - | 0.00% | 1,591,862 | 0.09% | ||
Aboderin A.S | 93,500 | 0.01% | 93,500 | 0.01% | ||
Durojaiye Kolawole Olalekan | 390,485 | 0.02% | 370,480 | 0.01% | ||
Other Directors' Shareholdings | 131,287,315 | 266.27% | 149,416,003 | 20.20% | ||
Total Directors' Shareholdings | 1,118,730,548 | 323.51% | 1,136,859,236 | 77.43% | ||
Free Float in Units and Percentage | 606,504,338 | 35.15% | 588,375,650 | 34.10% | ||
Free Float in Value (N) | 5,701,140,777.20 | 3,088,972,162.50 |
Declaration:
May & Baker Nigeria Plc with a free float percentage of 35.15% as at 31st December, 2024, is compliant with The Exchnage's free float requirements for companies listed on the Main Board.
6
MAY & BAKER NIGERIA PLC
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2024.
1 Description of business
May & Baker Nigeria Plc. was incorporated as a private limited liability company in Nigeria on December 4, 1944 and commenced business on the same date. It was listed on the Nigerian stock exchange in 1994. The company is involved in the manufacture, sale and distribution of human pharmaceuticals, human vaccines and consumer products. Registered business address is 3/5 Sapara street, Industrial Estate, Ikeja, Lagos, Nigeria
2. Basis of preparation
2.1 Statement of compliance
These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB), and in compliance with Financial Reporting Council of Nigeria Act No 6 2011. Additional information required by national regulations has been included where appropriate.
These consolidated financial statements comprise of the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of financial position, the consolidated and separate statement of changes in equity, the consolidated and separate statement of cashflows and notes to the consolidated financial statements.
2.2 Going concern status
These consolidated financial statements have been prepared on a going concern basis, which assumes that the entity will be able to meet its financial obligations as at when they fall due. There are no significant financial obligations that will impact on the entity's resources which will affect the going concern of the entity. Management is satisfied that the entity has adequate resources to continue in operational existence for the foreseeable future. For this reason, the going concern basis has been adopted in preparing these consolidated financial statements.
2.3 Basis of measurement
These consolidated financial statements have been prepared in accordance with the going concern principle under the historical cost convention, except for financial assets (liabilities) which were measured at fair value. The liability for defined benefit obligations is recognized as the present value of the defined benefit obligation less the total of the plan assets, plus unrecognized actuarial gains, less unrecognized past service cost and unrecognized actuarial losses while the plan assets for defined benefit obligations are measured at fair value.
These consolidated financial statements are presented in the Nigerian Naira (NGN), which is the Company's functional currency for presentation.
2.3.1 Functional and presentation currency
Items included in these consolidated financial statements are measured using the currency of the primary economic environment in which the Group operates ("the functional currency"). The consolidated financial statements are presented in Nigerian Naira (N) which is the Group's functional currency and presentation currency.
2.4 Use of estimates and judgements
The preparation of these consolidated financial statements in conformity with IFRS requires the use of certain critical accounting estimates, it also requires management to exercise its judgment in the process of applying the company's accounting policies. Changes in assumptions may have a significant impact on these consolidated financial statements in the period the assumptions changed. Management believes that the underlying assumptions are appropriate and therefore the Group's financial statements present the financial position and results fairly.
2.5. Summary of Standards and Interpretations effective for the first time
7
MAY & BAKER NIGERIA PLC
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2024.
IFRIC 23 Uncertainty over Income Tax Treatments
The interpretation specifies how an entity should reflect the effects of uncertainties in accounting for income taxes.
2.5.1 Standards Issued and Effective on or after 1 January 2022 a) IFRS 17 Insurance Contracts
IFRS 17 creates one accounting model for all insurance contracts in all jurisdictions that apply IFRS.
This standard replaces IFRS 4 - Insurance contracts.
The key principles in IFRS 17 are that an entity:
- identifies as insurance contracts those contracts under which the entity accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain, future event (the insured event) adversely affects the policyholder;
- separates specified embedded derivatives, distinct investment components and distinct performance obligations from the insurance contracts;
- divides the contracts into groups it will recognise and measure;
- recognises and measures groups of insurance contracts at a risk-adjusted present value of the future cash flows (the fulfilment cash flows) that incorporates all the available information about the fulfilment cash flows in a way that is consistent with observable market information plus (if this value is a liability) or minus (if this value is an asset) an amount representing the unearned profit in the group of contracts (the contractual service margin);
- recognises the profit from a group of insurance contracts over the period the entity provides insurance coverage, and as the entity is released from risk, if a group of contracts is or becomes loss-making, an entity recognises the loss immediately;
- presents separately insurance revenue, insurance service expenses and insurance finance income or expenses;
- discloses information to enable users of financial statements to assess the effect that contracts within the scope of IFRS 17 have on the financial position, financial performance and cash flows of the entity. To do this, an entity discloses qualitative and quantitative information about:
- the amounts recognised in its financial statements from insurance contracts;
- the significant judgements, and changes in those judgements, made when applying the Standard; and
- the nature and extent of the risks from contracts within the scope of this Standard.
2.5.2 Narrow Scope Amendments deferred until further notice a) IFRS 10 consolidated financial statements
Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28): Narrow scope amendment address an acknowledged inconsistency between the requirements in IFRS 10 and those in IAS 28 (2011), in dealing with the sale or contribution of assets between an investor and its associate or joint venture.
8
MAY & BAKER NIGERIA PLC
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2024.
b) IAS 28 Investments in Associates and Joint Ventures
Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28): Narrow scope amendment to address an acknowledged inconsistency between the requirements in IFRS 10 and those in IAS 28 (2011), in dealing with the sale or contribution of assets between an investor and its associate or joint venture.
2.5.3 New standards, amendments and interpretations issued but without an effective date At the date of authorisation of these financial statements the following standards, amendments to
Amendments to IFRS 10 and IAS 28 consolidated financial statements and Investments in Amends IFRS 10 consolidated financial statements and IAS 28 Investments in Associates and Joint
- Require full recognition in the investor's financial statements of gains and losses arising on the
- Require the partial recognition of gains and losses where the assets do not constitute a
These requirements apply regardless of the legal form of the transaction, e.g. whether the sale or
3 Significant accounting policies
The principal accounting policies adopted are set out below.
3.1 Foreign currency translation
Foreign currency transactions are booked in the functional currency of the Group (naira) at the exchange rate ruling on the date of transaction. Foreign currency monetary assets and liabilities are retranslated into the functional currency at rates of exchange ruling at the reporting period. Exchange differences are included in the Statement of profit or loss and other comprehensive income. Non- monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
3.2 Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries) made up to 31 December each year. Control is achieved where the Company has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities.
The results of subsidiary acquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the group. All intra-group transactions, balances, income and expenses are eliminated on consolidation.
3.3 Business combinations
Acquisitions of subsidiaries are accounted for using the acquisition method. The consideration for each acquisition is measured at the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquire. Acquisition-related costs are recognised in profit or loss as incurred.
Where a business combination is achieved in stages, the Group's previously-held interests in the acquired entity are re-measured to fair value at the acquisition date (i.e. the date the Group attains control) and the resulting gain or loss, if any, is recognised in profit or loss. Amounts arising from
9
MAY & BAKER NIGERIA PLC
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2024.
interests in the acquiree prior to the acquisition date that have previously been recognised in other comprehensive income are reclassified to profit or loss, where such treatment would be appropriate if that interest were disposed of.
The acquiree's identifiable assets, liabilities and contingent liabilities that meet the conditions for
recognition under IFRS 3(2008) are recognised at their fair value at the acquisition date, except that:
- Deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are recognised and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee Benefits respectively;
- assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non- current Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see below), or additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognised as of that date.
The measurement period is the period from the date of acquisition to the date the Group obtains complete information about facts and circumstances that existed as of the acquisition date, and is subject to a maximum of one year.
3.4 Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances.
a) Sale of goods
Revenue from the sale of goods is recognised when the goods are delivered and titles have passed, at which time all the following conditions are satisfied:
- the Group has transferred to the buyer the significant risks and rewards of ownership of the
- the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
- the amount of revenue can be measured reliably;
- it is probable that the economic benefits associated with the transaction will flow to the Group;
- the costs incurred or to be incurred in respect of the transaction can be measured reliably;
- the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold.
b) Interest income
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.
10
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