Page 57 - Learn Africa 2021 Annual Report

Learn Africa Plc
Notes to the Financial Statements (cont’d)

For the year ended 31 March 2021

Learn Africa evaluates impairment losses for potential reversals when events or
circumstances may indicate such consideration is appropriate. The increased carrying
amount of an asset other than goodwill attributable to a reversal of an impairment loss shall
not exceed the carrying amount that would have been determined (net of amortisation
or depreciation) had no impairment loss being recognised for the asset in prior years.
Impairment losses and reversals are recognised in profit or loss.

2.4.5 Inventories
Inventories are valued at the lower of cost and net realisable value. Costs incurred in
bringing each product to its present location and conditions are accounted for as follows:

1 Raw materials and consumables:
Purchase cost on a first in, first out basis.
2 Goods-in-transit, work-in-progress and finished goods.
3 Goods-in-transit are valued at invoice price together with other attributable charges.
4 The cost of finished goods comprises suppliers’ invoice prices and, where appropriate,
freight, printing costs and other charges incurred to bring the materials to their location
and condition.
5 Cost of direct materials and labour and a proportion of manufacturing overheads
based on normal operating capacity but excluding borrowing costs.
6 Net realisable value is the estimated selling price in the ordinary course of business,
less estimated costs of completion and the estimated costs necessary to make the sale.

2.4.6 Leases
The Company assesses at contract inception whether a contract is, or contains a lease. That
is, if the contract conveys the right to control the use of an identified asset for a period of
time in exchange for consideration.

Company as a lessee
The Company applies a single recognition and measurement approach for all leases. The
Company recognises lease liabilities (if any) to make lease payments and right-of-use-
assets representing the right to use the underlying assets.

i) Right-of-use assets
The Company recognises right-of-use assets at the commencement date of the
lease (i.e. the date the underlying asset is available for use). Right-of-use assets are
measured at cost, less any accumulated depreciation and impairment losses, and
adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets

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