UNBOUNCE - EXAMPLE PAGE-REPORT-ENTERPRISE DOCUMENT-KINGSPAN - Flipbook - Page 134
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2021 (continued)
1
Statement of Accounting Policies (continued)
Effective Date – periods
beginning on or after
IFRS 17 Insurance Contracts
Amendments to IAS 1 Presentation of Financial Statements - Classification of Liabilities as Current or Non-current
Amendments to IAS 12 Income Taxes - Deferred Tax related to Assets and Liabilities arising from a Single Transaction
Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Disclosure of Accounting policies
Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors Definition of Accounting Estimates
Amendments to IFRS 3 Business Combinations - Reference to the Conceptual Framework
Amendments to IAS 16 Property, Plant and Equipment - Proceeds before Intended Use
Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets Onerous Contracts – Costs of Fulfilling a Contract
Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards –
Subsidiary as a first-time adopter
Amendments to IFRS 9 Financial Instruments – Fees in the ’10 per cent’ test for derecognition of financial liabilities
Amendments to IAS 41 Agriculture – Taxation in fair value measurements
1 January 2023
1 January 2023*
1 January 2023*
1 January 2023*
1 January 2023*
1 January 2022
1 January 2022
1 January 2022
1 January 2022
1 January 2022
1 January 2022
* Not EU endorsed
Basis of consolidation
The Group consolidated financial
statements incorporate the financial
statements of the Company and its
subsidiary undertakings.
Subsidiaries
Subsidiaries are entities controlled by
the Group. The Group controls an entity
when it is exposed to, or has the rights to,
variable returns from its involvement with
the entity and has the ability to affect
those returns through its power over
the entity.
Subsidiaries are included in the Group
financial statements from the date on
which control over the entity is obtained
and cease to be consolidated from the
date on which control is transferred out
of the Group.
Transactions eliminated on consolidation
Intragroup transactions and balances,
and any unrealised gains arising from such
transactions, are eliminated in preparing
the consolidated financial statements.
Unrealised losses are eliminated in the
same manner as unrealised gains, but only
to the extent that there is no evidence
of impairment.
Segment reporting
The Group’s accounting policy for
identifying segments is based on internal
management reporting information that
is routinely reviewed by the Board of
Directors, which is the Chief Operating
Decision Maker (CODM) for the Group.
130 - 131
The measurement policies used for the
segment reporting under IFRS 8 Operating
Segments are the same as those used in
the consolidated financial statements.
Segment results that are reported to the
CODM include items directly attributable
to a segment as well as those that can
be allocated on a reasonable basis.
Unallocated items comprise mainly
corporate assets, finance income and
expenses and tax assets and liabilities.
The Group has determined that it has five
operating segments: Insulated Panels,
Insulation, Water & Energy, Data & Flooring
and Light & Air.
Revenue recognition
The Group recognises revenue exclusive
of sales tax and trade discounts which
would occur over time or at a point
in time. The Group uses the five-step
model as prescribed under IFRS 15
Revenue from Contracts with Customers
on the Group’s revenue transactions.
This includes the identification of the
contract, identification of the performance
obligations under same, determination
of the transaction price, allocation of
the transaction price to performance
obligations and recognition of revenue.
Typically, individual performance
obligations are specifically called out in
the contract which allows for accurate
recognition of revenue as and when
performances are fulfilled.
The Group has generally concluded
that it is the principal in its revenue
arrangements, because it typically controls
the goods or services before transferring
them to the customers.
The Group has identified a number
of revenue streams where revenue is
recognised at a point in time and/or over
time. These are detailed below:
Supply only contracts
The point of recognition arises when the
Group satisfies a performance obligation
by transferring control of a promised
good or service to the customer, which
could occur over time or at a point in
time. Revenue is recognised at the time
of delivery at the delivery address (where
Kingspan is to deliver the goods to the
delivery address) or at Kingspan’s works
(where the customer is to collect the
goods) or, if the customer wrongfully fails
to take delivery of the goods, the time
when Kingspan has tendered delivery
of the goods. Invoicing occurs at the
point of final delivery of the product or
performance obligation, at which point
a right is established for unconditional
consideration as control passes to the
customer. Typically, payment terms are 30
days from the end of the month in which
the invoice is raised.
