Page 64 - Learn Africa 2021 Annual Report

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

For the year ended 31 March 2021

This category generally applies to interest-bearing loans and borrowings.

Trade and other payables
Trade payables are initially recognised at the amount required to be paid, less, when material, a
discount to reduce the payables to fair value. Subsequently, trade payables are measured at amortised
cost using the effective interest method.

Derecognition of financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged or cancelled
or expires. When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an
exchange or modification is treated as the derecognition of the original liability and the recognition
of a new liability. The difference in the respective carrying amounts is recognised in the profit or loss.

Offsetting of financial liabilities
Financial assets and financial liabilities are offset and the net amount presented in the statement of
financial position when, and only when, the Company currently has a legally enforceable right to set
off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the
liability simultaneously.

Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand and short-term deposits with an original
maturity of three months or less in the statement of financial position. For the purpose of the statement
cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above.

2.4.9 Taxation

Current income tax
Current income tax assets and liabilities for the current period are measured at the amount expected to
be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the
amount are those that are enacted or substantively enacted by the reporting date in Nigeria. Current
income and education taxes assets and liabilities also include adjustments for tax expected to be
payable or recoverable in respect of previous periods.

Deferred tax
Deferred tax is provided using the liability method in respect of temporary differences at the reporting
date between the tax bases of assets and liabilities and their carrying amounts for financial reporting
purposes.

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