90
intangible assets with indefinite lives annually for impairment using a fair value method such as discounted
cash flows.
The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting
policy stated in note 3.6. The recoverable amounts of cash-generating units have been determined based on
value-in-use calculations, these calculation require the use of accounting estimates note 6.2.
• Budget of construction contracts
The treatment for income and expenses of a construction contract, depends on whether the final result of the
contract can be reliably estimated. When the result of a construction contract can be estimated reliably then all
income and expenses related to the contract are recognized as such during the time period of the contract. The
Group uses the percentage of completion method to determine the appropriate amount of income and expense
to be recognized in each period. The percentage of completion is calculated as the contracted cost realized
over the total budgeted cost of construction for each project.
• Income Tax
Group and company is subject to income taxes in numerous jurisdictions. Significant estimates are required
in determining the provision for income taxes. There are many transactions and calculations for which the
ultimate tax determination is uncertain during the ordinary course of business. Group and company recognises
liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the
final tax outcome of these matters is different from the amounts that were initially recorded, such differences
will impact the income tax and deferred tax provisions in the period in which such determination is made.
• Provisions
Doubtful accounts are reported at the amounts likely to be recoverable based on historical experience of
customer default. As soon as it is learned that a particular account is subject to a risk over and above the
normal credit risk (e.g., low creditworthiness of customer, dispute as to the existence or the amount of the
claim, etc.), the account is analyzed and written down if circumstances indicate the receivable is uncollectible.
Provisions for environmental rehabilitation are reported at the amounts that are likely to be claimed against
the Group in order to settle the liability
• Contingencies
The Group is involved in litigation and claims in the normal course of operations. Management is of the opinion
that any resulting settlements would not materially affect the financial position of the Group as at December
31, 2013. However, the determination of contingent liabilities relating to the litigation and claims is a complex
process that involves judgments as to the outcomes and interpretation of laws and regulations. Changes in the
judgments or interpretations may result in an increase or decrease in the Company’s contingent liabilities in
the future.
