RCS GROUP CONSOLIDATED FINANCIAL STATEMENTS
for the period ended 31 December 2015
amount does not exceed the carrying amount that would have
been determined, net of depreciation or amortisation, if no
impairment loss had been recognised.
1.12 Stated Capital and Reserves
attributable to the issue of ordinary shares are recognised as a
deduction fromequity, net of any taxation effects.
Foreign currency translation reserve
Gains and losses arising on translation of the assets, liabilities,
income and expenses of foreign operations are recognised
directly in equity as a foreign currency translation reserve.
Cash flow hedge reserve
Anon-distributable reserve arises as a result of the application
of hedge accounting gains or losses on interest rate swaps.
Dividends and the related withholdings tax are accounted
for in the period when the dividend is declared. Dividends
declared on equity instruments after the reporting date, and
the related withholding taxation thereon, are accordingly
not recognised as liabilities at the reporting date.
1.14 Interest earned
Revenue comprises interest income. Interest is recognised
on a time-proportion basis taking account of the principal
outstanding and the effective interest rate over the period
to maturity, when it is probable that such income will accrue
to the RCS Group.
1.15 Interest expense
Interest expense comprises interest which has been incurred
on borrowings. All borrowing costs are recognised in the
1.16 Other income
Club income is recognised in the income statement when due.
Collection income is recognised in the income statement
Net insurance premiums
Insurance premiums are recognised, net of claims, in the
income statement when due.
Merchant commission income
Merchant commission income is recognised when the related
transaction on which the commission is earned has been
Service and initiation fee income
Service and initiation fee income are recognised in the income
statement when due.
1.17 Operating lease
Leases where the lessor retains the risks and rewards of
ownership of the underlying asset are classified as operating
leases. Paymentsmade under operating leases are recognised
in the income statement on a straight-line basis over the term
of the lease.
Income taxation expense comprises current and deferred
Income taxation expense is recognised in the income
statement except to the extent that it relates to a transaction
that is recogniseddirectly inother comprehensive incomeor in
equity, in which case it is recognised in other comprehensive
income or equity as appropriate.