Interfront Annual Report 2022

PART E: FINANCIAL INFORMATION 93 International Frontier Technologies SOC Ltd Trading as Interfront Financial Statements for the year ended 31 March 2022 1.8 Impairment of Cash-Generating Assets Identification The entity assesses at each reporting date whether there is any indication that a cash-generating asset may be impaired. If any such indication exists, the entity estimates the recoverable amount of the asset. 1.9 Impairment of Non-Cash-Generating Assets Identification The entity assesses at each reporting date whether there is any indication that a non-cash-generating asset may be impaired. If any such indication exists, the entity estimates the recoverable service amount of the asset. 1.10 Share Capital/Contributed Capital An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Ordinary shares as well as the loan received from the Shareholder are classified as equity. 1.11 Employee Benefits Short-term employee benefits When an employee has rendered service to the entity during a reporting period, the entity recognises the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service as a: • Liability (accrued expense), after deducting any amount already paid. If the amount already paid exceeds the undiscounted amount of the benefits, the entity recognises that excess as an asset (prepaid expense) to the extent that the prepayment will lead to, for example, a reduction in future payments or a cash refund; and • Expense, unless another Standard of GRAP requires or permits the inclusion of the benefits in the cost of an asset. The expected cost of compensated absences is recognised as an expense as the employees render services that increase their entitlement or, in the case of non-accumulating absences, when the absence occurs. The entity measures the expected cost of accumulating compensated absences as the additional amount that the entity expects to pay as a result of the unused entitlement that has accumulated at the reporting date. The entity recognises the expected cost of bonus, incentive and performance related payments when the entity has a present legal or constructive obligation to make such payments as a result of past events and a reliable estimate of the obligation can be made. Post-employment benefits Defined contribution plans Payments to a defined contribution retirement benefit plan are charged as an expense as they fall due. The entity has no legal or constructive obligation to pay future benefits if the responsibility is vested with the contributing retirement benefit schemes. 1.12 Provisions and Contingencies Provisions are recognised when: • The entity has a present obligation as a result of a past event; • It is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation; and • A reliable estimate can be made of the obligation.