Employee benefits

Short-term employee benefits are those expected to be due within 12 months after the end of the period in which the employees render the related service. They include wages, salaried, profit sharing and bonuses, short term compensated absence and non-monetary benefits paid to current employees.

Post employment benefit plans are the employee benefits that are payable after the completion of the employment. They include pension, life insurance, and medical care.

Other long term employee benefits include long service leave or sabbatical leave, medical aid, other long-term service benefits, long term disability benefits, profit sharing and bonuses and if they are not payable within 12 month after the year end.

The Company recognizes termination benefits when it is 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.

The Company shall recognize the cost of all employee benefits to which its employees have become entitled as a result of service rendered to the Company during the reporting period: as a liability after deducting amounts that have been paid either directly to the employees or as a contribution to the employee benefit fund. If the amount paid exceed the obligation arising from service before the reporting date, the Company shall recognize that excess as an asset to the extent that the prepayment will lead to a reduction in the future payments or in cash refund; as an expense, unless the cost obliged to be recognized as part of the cost of an asset.

Impairment of assets

A company shall assess at each reporting date whether there is any indication that an asset may be impaired. If any such indication exists the company shall estimated the recoverable amount of the asset.

The recoverable amount is the higher of an assets or cash generating units fair value less cost to sell and its value in use. In assessing value in use the estimated future cash flows are discounted to their present value, applying appropriate discount rate.

If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, carrying amount of the assets (or CGU) is reduced to its recoverable amount. The difference between the carrying amount and recoverable amount is recognized as an impairment loss in profit or loss.

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