Page 116 - CCL AR 2017 Final

3.11 Revenue recognition
Revenue is recognised to the extent that it is probable that economic benefits will flow to the Company
and revenue can be reliably measured. Revenue is measured at fair value of the consideration received
or receivable.

3.11.1 Sale of goods
Revenue from sales is recognised upon passage of title to the customers that generally coincides with
physical delivery. It is recorded at net of trade discounts and volume rebates.

3.11.2 Other income
Profit on bank accounts is recognised on effective interest method.

Dividend income is recognised when the right to receive such payment is established.

Other revenues are accounted for on accrual basis.

3.12 Staff retirement benefits

3.12.1 Gratuity fund

The Company operates an approved and funded gratuity scheme for all eligible employees who have
completed the minimum qualifying period of service. The scheme is administered by the trustees
nominated under the trust deed. The contributions to the scheme are made in accordance with actuarial
valuation using Projected Unit Credit method. Actuarial gains and losses are recognized in full in the
period in which they occur in the other comprehensive income. All the past service costs are recognised
at the earlier of when the amendments or curtailment occurs and when the Company has recognised
related restructuring or terminations benefits.

3.12.2 Provident fund
The Company operates an approved defined contributory provident fund scheme for all permanent
employees who have completed the minimum qualifying period of service. Equal monthly contributions
are made by the Company and the employees to the Fund at the rate of 8.33 percent of basic salary.

3.13 Provisions
Provisions are recognised when the Company has a present (legal or constructive) obligation as a result
of past events, it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation and a reliable estimate of the obligation can be made. Provisions are reviewed at
each balance sheet date and adjusted to reflect the current best estimate.

3.14 Taxation

3.14.1 Current
Provision for current taxation is based on taxable income at the current rates of taxation after taking into
account tax credits and rebates available, if any, or minimum tax on turnover or Alternate Corporate
Tax whichever is higher and tax paid on final tax regime basis. Alternate Corporate Tax is calculated in
accordance with the provisions of Section 113C of Income Tax Ordinance.

3.14.2 Deferred
Deferred tax is provided in full using the balance sheet liability method on all temporary differences arising
at the balance sheet date, between the tax bases of the assets and the liabilities and their carrying amounts.
Deferred tax liabilities are recognized for all taxable temporary differences and deferred tax assets are
recognized for all deductible temporary differences, unused tax losses and unused tax credits to the extent
that it is probable that future taxable profits will be available against which these can be utilized.

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