Unaudited

financial state

for the three months ended March 31, 2022

BUA Cement Plc RC 119 3879

UNAUDITED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2022

CONTENT

Statement of Significant Accounting Policies

PAGE 01

Statement of profit or loss and other comprehensive income

PAGE 12

Statement of financial position

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Statement of changes in equity

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Cash flow statement

PAGE 15

Notes on the financial accounts

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BUA CEMENT PLC

UNAUDITED FINANCIAL STATEMENTS

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The following are the main accounting policies adopted by the Company in the preparation of its financial statements.

  • 1. BASIS OF PREPARATION

    These financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and the relevant International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (the IASB).

    These financial statements have been prepared under the historical cost convention. The main accounting methods applied in the presentation of the financial statements are described below. These policies have been applied to all periods presented except for the adoption of new accounting policies.

  • 2. REVENUES

    Revenue is measured at the fair value of the consideration received or receivable net of value added tax, excise duties, returns, customer allowances and other sales-related allowances.

    Revenue from the sale of products is recognized in profit or loss when the contract has been approved by both parties, the rights have been clearly identified, payment terms have been defined, the contract has commercial substance and collectability has been established. as likely. Collectability of payment from customers is established based on historical customer records, guarantees provided and prepayments made, if any.

    The four-step revenue recognition process is shown below:

    • identify the contract with a customer

    • identify the obligation of result in the contract

    • determine the transaction price

    • allocate the price to the performance obligation

    • recognize revenue

  • 3. COST OF GOODS SOLD

    These are the costs of internally produced goods sold. The cost of internally produced goods includes directly attributable costs such as direct material costs, direct labor and energy costs, as well as production overheads, including depreciation of production facilities. Cost of goods sold includes inventory write-downs, if any.

BUA CEMENT PLC

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UNAUDITED FINANCIAL STATEMENTS

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

CONTINUED

  • 4. SELLING AND DISTRIBUTION FEES

    Includes marketing costs, costs of organizing the sales and distribution process.

  • 5. FOREIGN CURRENCY

    Items included in the Company’s financial statements are measured using the currency of the primary economic environment in which they operate (“the functional currency”). The functional currency and the presentation currency of the Company is the Nigerian Naira (N).

    Foreign currency transactions are translated into the functional currency using the exchange rates in effect on the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and the translation of exchange rates of assets that are monetary and denominated in currencies other than the Company’s functional currency are recognized in foreign exchange gain or loss in profit or loss. .

  • 6. FINANCIAL INSTRUMENTS

    Financial instruments represent the Company’s financial assets and liabilities. Financial assets and financial liabilities are recognized in the Company’s statement of financial position when the Company becomes a party to the contractual provisions of the instrument. These instruments are generally held for liquidity, investment, trading or hedging purposes. All financial instruments are initially recognized at fair value plus directly attributable transaction costs, except those recognized at fair value through profit or loss where the transaction cost is recognized immediately in profit or loss.

    Financial instruments are recognized (derecognized) on the date the Company commits to buy (sell) the instruments (trade date recognition).

    Financial assets

    Financial assets include trade and other receivables, cash and bank balances and certain other assets. Financial liabilities include term loans, bank overdrafts, trade payables and certain other liabilities. The Company classifies its financial assets into one of the categories described below, depending on the purpose for which the asset was acquired. The Company has not classified any of its financial assets as held to maturity.

    Subsequent measurement

    After the initial measurement, the financial instruments are measured either at their fair

BUA CEMENT PLC

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UNAUDITED FINANCIAL STATEMENTS

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

CONTINUED

value or amortized cost, according to their classifications below. The Company’s accounting policy for each category is as follows:

I. Customers and other debtors

These assets are non-derivative financial assets with fixed or determinable payments that are not quoted on an active market. They arise primarily from the provision of goods and services to customers, but also include other types of contractual monetary assets. They are initially recognized at fair value plus transaction costs directly attributable to their acquisition or issue and are then recognized at amortized cost using the effective interest rate method, less the provision for impairment.

Provisions for impairment are recognized when there are objective elements (such as significant financial difficulties on the part of the counterparty in the event of default or a significant delay in payment) that the Company will not be able to recover all of the amounts due under the term receivable, the amount of such provision being the difference between the net book value and the present value of the expected future cash flows associated with the impaired receivable.

For trade receivables, which are reported net, these provisions are recorded in a separate provision account, with the loss recognized in administrative expenses in the statement of comprehensive income. If it is confirmed that the trade receivable will not be recoverable, the gross book value of the asset is deducted from the associated provision.

ii. Cash and cash equivalents

Cash and cash equivalents include cash on hand, demand deposits with banks and other highly liquid short-term investments with original maturities of three months or less that are readily convertible into a known amount of cash.

Impairment of financial assets carried at amortized cost

The Company assesses at each reporting date whether there is objective evidence that trade and other receivables are impaired. Trade and other receivables are impaired if objective evidence indicates that a loss-generating event has occurred after initial recognition and that loss-generating event has a negative effect on the estimated future cash flows of the receivables which may be reliably estimated. The criteria used by the Company to determine whether there is objective evidence of impairment include:

BUA CEMENT PLC

known cash flow difficulties experienced by the customer breach of contract, such as default or late payment for goods and services

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