Page 70 - Learn Africa 2021 Annual Report

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

For the year ended 31 March 2021

b) Short-term benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are
expensed as the related service is provided.

A liability is recognised for the amount expected to be paid under short-term cash bonus or
profit sharing plans, if the Company has a present legal or constructive obligation to pay
this amount as a result of past service provided by the employee, and the obligation can be
estimated reliably.

2.4.14 Foreign currency transactions and balances
Transactions in foreign currencies are initially recorded by the Company’s entities at
their respective functional currency spot rates at the date the transaction first qualifies
for recognition. Monetary assets and liabilities denominated in foreign currencies are
translated at the functional currency spot rates of exchange at the reporting date.
Differences arising on settlement or translation of monetary items are recognised in profit
or loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are
translated, using the exchange rates at the dates of the initial transactions. Non-monetary
items measured at fair value in a foreign currency are translated, using the exchange rates
at the date when the fair value is determined. The gain or loss arising on translation of
non-monetary items measured at fair value is treated in line with the recognition of gain
or loss on change in fair value of the item (i.e. translation differences on items whose fair
value gain or loss is recognised in other comprehensive income or profit or loss are also
recognised in other comprehensive income or profit or loss, respectively).

2.4.15 Share capital and reserves
a) Share issue costs
Incremental costs directly attributable to the issue of an equity instruments are deducted
from the initial measurement of the equity instruments.

b) Dividend on ordinary shares
Dividends on the Company’s ordinary shares are recognised in equity in the period in
which they are paid or, if earlier, approved by the Company’s shareholders.

c) Asset revaluation reserves
This relates to revaluation surplus on property, plant and equipment prior to date of
transition to IFRS.

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