GLAXOSMITHKLINE CONSUMER NIGERIA PLC GLAXOSMITHKLINE CONSUMER NIGERIA PLC
UNAUDITED CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL
STATEMENTS
FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2023
GlaxoSmithKline Consumer Nigeria Plc
Condensed unaudited consolidated and seperate financial statements
For the 9 months period ended 30 September 2023
Table of Contents | Page |
Condensed unaudited consolidated and separate statement of profit or loss and other comprehensive income | 1 - 2 |
Condensed unaudited consolidated and separate statement of financial position | 3 |
Condensed unaudited consolidated and separate statement of changes in equity | 4 |
Condensed unaudited consolidated and separate statement of cash flows | 5 |
Shareholding structure and free float status | 6 |
Notes to the unaudited condensed consolidated and separate financial statements | 7 - 31 |
GlaxoSmithKline Consumer Nigeria Plc
Condensed unaudited consolidated and separate statement of profit or loss and other comprehensive income For the 9 months period ended 30 September 2023
Jul - Sep | Jul - Sep | Jul - Sep | Jul - Sep | |
3 months ended | 2023 | 2022 | 2023 | 2022 |
N'000 | N'000 | N'000 | N'000 | |
Revenue | 3,141,639 | 5,614,311 | 3,141,639 | 5,614,311 |
Cost of sales | (2,462,617) | (4,186,621) | (2,462,617) | (4,186,621) |
Gross profit | 679,022 | 1,427,690 | 679,022 | 1,427,690 |
Selling and distribution costs | (925,219) | (674,498) | (925,219) | (674,498) |
Administrative expenses | (1,600,087) | (596,778) | (1,599,436) | (596,149) |
Finance income | 124,157 | 80,233 | 124,157 | 80,233 |
Other gains and (losses) | 2,015,245 | (33,701) | 2,015,245 | (33,701) |
Impairment loss on financial assets | (74,691) | (4,142) | (74,691) | (4,142) |
Profit before tax | 218,427 | 198,804 | 219,078 | 199,433 |
Current tax expense | (110,063) | (64,611) | (110,063) | (64,815) |
Profit for the period | 108,364 | 134,193 | 109,015 | 134,618 |
Profit for the period attributable to: | ||||
Shareholders of the Company | 108,364 | 134,193 | 109,015 | 134,618 |
Non-controlling interest | - | - | - | - |
108,364 | 134,193 | 109,015 | 134,618 | |
Total comprehensive income for the period attributable to: | ||||
Shareholders of the Company | 108,364 | 134,193 | 109,015 | 134,618 |
Non-controlling interest | - | - | - | - |
108,364 | 134,193 | 109,015 | 134,618 | |
Basic and diluted earnings per share (Kobo) | 9 | 11 | 9 | 12 |
1
GlaxoSmithKline Consumer Nigeria Plc
Condensed unaudited consolidated and separate statement of profit or loss and other comprehensive income For the 9 months period ended 30 September 2023
Jan - Sep | Jan - Sep | Jan - Sep | Jan - Sep | ||
9 months ended | 2023 | 2022 | 2023 | 2022 | |
Notes | N'000 | N'000 | N'000 | N'000 | |
Revenue | 5 | 10,892,517 | 20,425,580 | 10,892,517 | 20,425,580 |
Cost of sales | 6 | (7,420,848) | (15,253,405) | (7,420,848) | (15,253,405) |
Gross profit | 3,471,669 | 5,172,175 | 3,471,669 | 5,172,175 | |
Selling and distribution costs | 7 | (2,358,118) | (2,844,197) | (2,358,118) | (2,844,197) |
Administrative expenses | 7 | (2,670,291) | (1,602,549) | (2,668,342) | (1,600,663) |
Finance income | 8 | 394,442 | 124,980 | 394,442 | 124,980 |
Other gains and (losses) | 9 | 1,980,054 | (104,738) | 1,980,054 | (104,738) |
Impairment loss on financial assets | 18.2 | (95,398) | (29,311) | (95,398) | (29,311) |
Profit before tax | 722,358 | 716,360 | 724,307 | 718,246 | |
Current tax expense | 11.1 | (274,272) | (232,817) | (274,272) | (233,430) |
Profit for the period | 448,086 | 483,543 | 450,035 | 484,816 | |
Other comprehensive income net of | |||||
income tax: | |||||
Items that will not be reclassified to | |||||
profit or loss: | - | - | - | - | |
- | - | - | - | ||
Total comprehensive income for the | |||||
period, net of tax | 448,086 | 483,543 | 450,035 | 484,816 | |
Profit for the period attributable to: | |||||
Shareholders of the Company | 448,086 | 483,543 | 450,035 | 484,816 | |
Non-controlling interest | - | - | - | - | |
448,086 | 483,543 | 450,035 | 484,816 | ||
Total comprehensive income for the | |||||
period attributable to: | |||||
Shareholders of the Company | 448,086 | 483,543 | 450,035 | 484,816 | |
Non-controlling interest | - | - | - | - | |
448,086 | 483,543 | 450,035 | 484,816 | ||
Basic and diluted / earnings per share | |||||
(Kobo) | 12 | 37 | 40 | 38 | 41 |
2
GlaxoSmithKline Consumer Nigeria Plc
Condensed unaudited consolidated and separate statement of financial position
As at 30 September 2023
As at | As at | As at | As at | As at | As at | ||
30 Sep 2023 | 31 Dec 2022 | 30 Sep 2022 | 30 Sep 2023 | 31 Dec 2022 | 30 Sep 2022 | ||
Notes | N'000 | N'000 | N'000 | N'000 | N'000 | N'000 | |
Assets | |||||||
Non-current assets | |||||||
Deferred tax asset | 11.3 | 413,802 | 413,802 | 231,223 | 413,802 | 413,802 | 231,223 |
Property, plant and equipment | 13 | 341,545 | 441,245 | 474,432 | 341,545 | 441,245 | 474,432 |
Investment property | 14 | 520,656 | 529,302 | 582,038 | 520,656 | 529,302 | 582,038 |
Investment in subsidiary | 16 | - | - | - | - | - | 160 |
1,276,003 | 1,384,349 | 1,287,693 | 1,276,003 | 1,384,349 | 1,287,853 | ||
Current assets | |||||||
Inventories | 17 | 1,382,603 | 3,739,540 | 3,848,204 | 1,382,603 | 3,739,540 | 3,848,204 |
Trade and other receivables | 18 | 2,374,451 | 3,847,810 | 4,592,909 | 2,374,451 | 3,847,810 | 4,592,909 |
Other assets | 19 | 87,303 | 63,167 | 68,958 | 87,303 | 63,167 | 68,958 |
Cash and cash equivalents | 20 | 24,170,895 | 19,976,023 | 18,196,345 | 24,170,895 | 19,976,023 | 18,196,345 |
28,015,252 | 27,626,540 | 26,706,416 | 28,015,252 | 27,626,540 | 26,706,416 | ||
Assets classified as held for sale | 15 | 75,879 | 375,315 | 691,460 | 75,879 | 375,315 | 691,460 |
28,091,131 | 28,001,855 | 27,397,876 | 28,091,131 | 28,001,855 | 27,397,876 | ||
Total assets | 29,367,134 | 29,386,204 | 28,685,569 | 29,367,134 | 29,386,204 | 28,685,729 | |
Equity and liabilities | |||||||
Equity | |||||||
Issued share capital | 21.1 | 597,939 | 597,939 | 597,939 | 597,939 | 597,939 | 597,939 |
Share premium | 21.2 | 51,395 | 51,395 | 51,395 | 51,395 | 51,395 | 51,395 |
Retained earnings | 8,673,472 | 8,883,118 | 8,595,515 | 8,511,290 | 8,718,987 | 8,427,444 | |
9,322,806 | 9,532,452 | 9,244,849 | 9,160,624 | 9,368,321 | 9,076,778 | ||
Non-current liabilities | |||||||
Liability for share-based payments | 24 | - | 8,768 | 26,279 | - | 8,768 | 26,279 |
- | 8,768 | 26,279 | - | 8,768 | 26,279 | ||
Current liabilities | |||||||
Trade and other payables | 22 | 19,708,629 | 19,145,605 | 19,017,378 | 19,884,557 | 19,323,482 | 19,198,742 |
Contract liabilities | 23 | 12,587 | 11,065 | 131,342 | 12,587 | 11,065 | 131,342 |
Liability for share-based payments | 24 | 13,271 | - | - | 13,271 | - | - |
Current tax liabilities | 11.2 | 309,841 | 688,314 | 265,721 | 296,095 | 674,568 | 252,588 |
Total current liabilities | 20,044,328 | 19,844,984 | 19,414,441 | 20,206,510 | 20,009,115 | 19,582,672 | |
Total liabilities | 20,044,328 | 19,853,752 | 19,440,720 | 20,206,510 | 20,017,883 | 19,608,951 | |
Total equity and liabilities | 29,367,134 | 29,386,204 | 28,685,569 | 29,367,134 | 29,386,204 | 28,685,729 |
The condensed unaudited consolidated and separate financial statements for the nine months period ended 30 September 2023 were approved and authorised for issue by the Board of Directors on 30 October 2023 and signed on its behalf by:
Mr. Edmund C. Onuzo | Mr. Olakunle Azeez Oyelana | Bosco Kirugi |
Chairman | Managing Director | Finance Director |
FRC/2015/IODN/00000011038 | FRC/2020/003/00000020395 | FRC/2022/PRO/DIR/003/956071 |
3
GlaxoSmithKline Consumer Nigeria Plc
Condensed unaudited consolidated and separate statement of changes in equity For the 9 months period ended 30 September 2023
Share | Share | Retained | ||
capital | premium | earnings | Total | |
Group | N'000 | N'000 | N'000 | N'000 |
At 1 January 2022 | 597,939 | 51,395 | 8,650,116 | 9,299,450 |
Profit for the year | - | - | 483,543 | 483,543 |
Dividends declared | - | - | (538,144) | (538,144) |
At 30 September 2022 | 597,939 | 51,395 | 8,595,515 | 9,244,849 |
At 1 January 2022 | 597,939 | 51,395 | 8,650,116 | 9,299,450 |
Profit for the year | - | - | 771,146 | 771,146 |
Dividends declared | - | - | (538,144) | (538,144) |
At 31 December 2022 | 597,939 | 51,395 | 8,883,118 | 9,532,452 |
At 1 January 2023 | 597,939 | 51,395 | 8,883,118 | 9,532,452 |
Profit for the period | - | - | 448,086 | 448,086 |
Dividends declared | - | - | (657,732) | (657,732) |
At 30 September 2023 | 597,939 | 51,395 | 8,673,472 | 9,322,806 |
Share | Share | Retained | ||
capital | premium | earnings | Total | |
Company | N'000 | N'000 | N'000 | N'000 |
At 1 January 2022 | 597,939 | 51,395 | 8,480,772 | 9,130,106 |
Profit for the year | - | - | 484,816 | 484,816 |
Dividends declared | - | - | (538,144) | (538,144) |
At 30 September 2022 | 597,939 | 51,395 | 8,427,444 | 9,076,778 |
At 1 January 2022 | 597,939 | 51,395 | 8,480,772 | 9,130,106 |
Profit for the year | - | - | 776,359 | 776,359 |
Dividends declared | - | - | (538,144) | (538,144) |
At 31 December 2022 | 597,939 | 51,395 | 8,718,987 | 9,368,321 |
At 1 January 2023 | 597,939 | 51,395 | 8,718,987 | 9,368,321 |
Profit for the period | - | - | 450,035 | 450,035 |
Dividends declared | - | - | (657,732) | (657,732) |
At 30 September 2023 | 597,939 | 51,395 | 8,511,290 | 9,160,624 |
4
GlaxoSmithKline Consumer Nigeria Plc
Condensed unaudited consolidated and separate statement of cash flows
For the 9 months period ended 30 September 2023
Jan - Sep | Jan - Dec | Jan - Sep | Jan - Sep | Jan - Dec | Jan - Sep | ||
2023 | 2022 | 2022 | 2023 | 2022 | 2022 | ||
Notes | N'000 | N'000 | N'000 | N'000 | N'000 | N'000 | |
Cash flows from operating activities | |||||||
Profit for the period | 448,086 | 771,146 | 483,543 | 450,035 | 776,359 | 484,816 | |
Adjustment for: | |||||||
Impairment of non-current and held-for-sale assets | 7.4 | 228,251 | 353,246 | - | 228,251 | 353,246 | - |
Depreciation | 7.3 | 68,742 | 122,116 | 82,380 | 68,742 | 122,116 | 82,380 |
Finance income | 8 | (394,442) | (319,508) | (124,980) | (394,442) | (319,508) | (124,980) |
Profit from sale of non-current and held-for-sale | 9 | (32,006) | (7,323) | (23,762) | (32,006) | (7,323) | (23,762) |
assets | |||||||
Rental income from investment property | 9 | (36,673) | (49,004) | (30,132) | (36,673) | (49,004) | (30,132) |
Income from sale of materials and scraps | 9 | (61,289) | (65,245) | (55,794) | (61,289) | (65,245) | (55,794) |
Unrealised exchange loss | 9 | 11,288,906 | 919 | - | 11,288,906 | 919 | - |
Current tax expense | 11.1 | 274,272 | 470,087 | 232,817 | 274,272 | 470,087 | 233,430 |
Impairment of investment in subsidiaries | 16 | - | - | - | - | 160 | - |
Share based payment expense | 24 | 9,748 | 1,423 | - | 9,748 | 1,423 | - |
Working capital adjustments: | |||||||
Changes in inventories | 2,356,937 | 2,305,860 | 2,197,196 | 2,356,937 | 2,305,860 | 2,197,196 | |
Changes in trade and other receivables | 1,473,359 | 1,332,281 | 577,978 | 1,473,359 | 1,332,281 | 577,978 | |
Changes in other assets | (24,136) | 139,679 | 133,888 | (24,136) | 139,679 | 133,888 | |
Changes in contract liabilities | 1,522 | (71,530) | 40,501 | 1,522 | (71,530) | 40,501 | |
Changes in trade and other payables | (11,182,142) | 2,190,542 | 2,022,336 | (11,184,091) | 2,185,169 | 2,020,450 | |
4,419,135 | 7,174,690 | 5,535,971 | 4,419,135 | 7,174,689 | 5,535,971 | ||
Income tax paid | 11.2 | (652,745) | (67,165) | (69,909) | (652,745) | (67,165) | (69,909) |
Net cash generated by operating activities | 3,766,390 | 7,107,525 | 5,466,062 | 3,766,390 | 7,107,524 | 5,466,062 | |
Cash flows from investing activities | |||||||
Proceeds from sale of non-current and held-for-sale | 142,795 | 41,907 | 47,757 | 142,795 | 41,907 | 47,757 | |
assets | |||||||
Interest received on investments | 394,442 | 310,303 | 124,980 | 394,442 | 310,303 | 124,980 | |
Proceeds received on investment property | 50,741 | 36,185 | - | 50,741 | 36,185 | - | |
Proceeds from sale of materials and scraps | 61,289 | 65,245 | 55,794 | 61,289 | 65,245 | 55,794 | |
Net cash flows generated by investing activities | 649,267 | 453,640 | 228,531 | 649,267 | 453,640 | 228,531 | |
Cash flows from financing activities | |||||||
Share based payment settlement | 24 | (5,245) | (18,934) | - | (5,245) | (18,934) | - |
Dividends paid during the period | 22.2 | (370,867) | (313,336) | (244,818) | (370,867) | (313,336) | (244,818) |
Lease liability paid | - | (1,500) | - | - | (1,500) | - | |
Net cash flows used in financing activities | (376,112) | (333,770) | (244,818) | (376,112) | (333,770) | (244,818) | |
Net increase in cash and cash equivalents | 4,039,545 | 7,227,395 | 5,449,775 | 4,039,545 | 7,227,394 | 5,449,775 | |
Cash and cash equivalents at 1 January | 19,976,023 | 12,746,570 | 12,746,570 | 19,976,023 | 12,746,570 | 12,746,570 | |
Effect of foreign exchange rate changes | 155,327 | 2,058 | - | 155,327 | 2,059 | - | |
Cash and cash equivalents at 30 September / 31 | |||||||
December | 20 | 24,170,895 | 19,976,023 | 18,196,345 | 24,170,895 | 19,976,023 | 18,196,345 |
5
GSK Consumer Nigeria Plc
Shareholding Structure and Free Float Status
Main Board
Year End - 31 December
Reporting Period - Nine Months Ended 30 September 2023
Share Price at end of reporting period: N11.35 (September 2022: N5.60)
Shareholding Structure/Free Float Status | ||||||
30-Sep-23 | 30-Sep-22 | |||||
Units | Percentage | Units | Percentage | |||
Issued share capital | 1,195,876,488 | 100% | 1,195,876,488 | 100% | ||
Substantial Shareholdings (5% and above) | ||||||
Setfirst Limited | 326,593,793 | 27.31% | 326,593,793 | 27.31% | ||
Smithkline Beecham Limited | 228,488,132 | 19.11% | 228,488,132 | 19.11% | ||
Stanbic Nominees Limited | 107,730,891 | 9.01% | 196,932,609 | 16.47% | ||
Total Substantial Shareholdings | 662,812,816 | 55.42% | 752,014,534 | 62.88% | ||
Directors' Shareholdings (direct and indirect), excluding directors with substantial interests | ||||||
Mr. Edmund C. Onuzo - direct | 337,912 | 0.03% | 337,912 | 0.03% | ||
Mr. Edmund C. Onuzo - indirect | 11,170 | 0.00% | 11,170 | 0.00% | ||
Mr. Samuel Kuye - direct | 923 | 0.00% | 923 | 0.00% | ||
Mr. Samuel Kuye - indirect | 93,750 | 0.01% | 93,750 | 0.01% | ||
Mrs. Oludewa Edodo-Thorpe - direct | 31 | 0.00% | 31 | 0.00% | ||
Mr. Kunle Oyelana - direct | 900 | 0.00% | 0 | 0.00% | ||
Total Directors' Shareholdings | 444,686 | 0.04% | 443,786 | 0.04% | ||
Other Influential Shareholdings | ||||||
None | - | - | - | - | ||
Free Float in Units and Percentage | 532,618,986 | 44.5% | 443,418,168 | 37.1% | ||
Free Float in Value | ₦ | 6,045,225,491.10 | ₦ | 2,483,141,740.80 |
Declaration
- GSK Consumer Nigeria Plc with a free float percentage of 44.5% as at 30 September 2023, is compliant with The Exchange's free float requirements for companies listed on the Main Board.
- GSK Consumer Nigeria Plc with a free float percentage of 37.1% as at 30 September 2022, is compliant with The Exchange's free float requirements for companies listed on the Main Board.
6
GlaxoSmithKline Consumer Nigeria Plc
Notes to the unaudited condensed consolidated and separate financial statements
For the 9 months period ended 30 September 2023
-
Corporate information
GlaxoSmithKline Consumer Nigeria Plc (the Company) is a public limited liability company incorporated in 1971 and domiciled in Nigeria where its shares are publicly traded. 46.4% of the shares of the Company are held by Setfirst Limited and Smithkline Beecham Limited (both incorporated in the United Kingdom); and 53.6% by Nigerian shareholders. The ultimate parent and ultimate controlling party is GlaxoSmithKline Plc, United Kingdom (GSK Plc UK). GSK Plc UK controls the Company through Setfirst Limited and Smithkline Beecham Limited.
The registered office of the Company is located at 1 Industrial Avenue, Ilupeju, Lagos.
The principal activities of the Company and its subsidiary are marketing and distribution of consumer healthcare and pharmaceutical products.
The consolidated financial statements of the Group comprise the result and the financial position of GlaxoSmithkline Consumer Nigeria Plc ( the Company) and its wholly owned subsidiary - Winster Pharmaceuticals Limited which has no turnover for the current period following the sale of its only product to a third party on 30 April 2012.
Securities Trading Policy
In compliance with Rule 17.15 Disclosure of Dealings in Issuers' Shares, Rulebook of the Exchange 2015 (Issuers Rule), the Company maintains effective Security Trading Policy which guides Directors, Audit Committee members, employees and all individuals categorized as insiders as to their dealing in the Company's shares. The Policy is regularly reviewed and updated by the Board. The Group has made specific inquiries of all the directors and other insiders and is not aware of any infringement of the policy during the period.
These unaudited condensed consolidated and separate financial statements for the period ended 30 September 2023 have been approved for issue by the directors on 30 October 2023.
- Basis of accounting
-
Basis of preparation
The condensed consolidated and separate financial statements have been prepared on an alternate basis that is consistent with IAS 34 Interim Financial Reporting , and with particular attention paid to the requirements of IFRS 5 Non- current Asset Held for Sale and Discontinued Operations ; IAS 32 Financial Instruments: Presentation ; IAS 36 Impairment of Assets and IAS 37 Provisions, Contingent Liabilities and Contingent Assets .
The condensed consolidated and separate interim financial statements have also been prepared in line with the requirements of the Companies and Allied Matters Act (CAMA) of Nigeria and Financial Reporting Council (FRC) Act of Nigeria.
The reasons for preparation of the financial statements on an alternate basis are as follows:
- The GSK Group informed GlaxoSmithKline Consumer Nigeria plc of its strategic intent to cease commercialization of its prescription medicines and vaccines in Nigeria through local operating Companies and transition to a local third-party direct distribution model for GSK products.
- The Haleon Group informed GlaxoSmithKline Consumer Nigeria plc of its intent to cease its distribution agreement with them in the coming months and to appoint a local third-party distributor in Nigeria for the supply of its consumer healthcare products.
Due to the above reasons, GlaxoSmithKline Consumer Nigeria Plc has no realistic alternative but to cease operations.
- Basis of measurement
The consolidated and separate financial statements have been prepared on a historical cost basis except where otherwise stated in the significant accounting policies. - Functional and presentation currency
The Group measures the items in its financial statements using the currency of the primary economic environment in which it operates (the functional currency). The financial statements are presented in Nigerian Naira ("NGN" or "N") which is the Group and Company's functional currency. All values are rounded to the nearest thousand (N'000), unless otherwise indicated.
- Summary of material accounting policy information
The Group has consistently applied the following accounting policies to all periods presented in these consolidated and separate financial statements, except if mentioned otherwise.
7
GlaxoSmithKline Consumer Nigeria Plc
Notes to the unaudited condensed consolidated and separate financial statements
For the 9 months period ended 30 September 2023
-
Basis of consolidation
The consolidated and separate financial statements comprise the financial statements of the Company and its subsidiary (Winster Pharmaceutical Limited) as at 30 June 2023. Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.
The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest's proportionate share of the recognised amounts of acquiree's identifiable net assets.
Acquisition-related costs are expensed as incurred. If the business combination is achieved in stages, the acquisition date carrying value of the acquirer's previously held equity interest in the acquiree is re-measured to fair value at the acquisition date; any gains or losses arising from such re-measurement are recognised in profit or loss.
Any contingent consideration to be transferred by the Group is recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability is recognised in accordance with IAS 39 either in profit or loss or as a change to other comprehensive income. Contingent consideration that is classified as equity is not re-measured, and its subsequent settlement is accounted for within equity.
Inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated. When necessary, amounts reported by subsidiaries have been adjusted to conform with the Group's accounting policies. Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions - that is, as transactions with the owners in their capacity as owners. The difference between fair value of any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.
When the Group ceases to have control, any retained interest in the entity is remeasured to its fair value at the date when control is lost, with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss. - Foreign currency transactions
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency spot rate of exchange ruling at the reporting date. All differences 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 as 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. - Revenue recognition
Revenue is recognised by applying a five-step approach as follows:
- Identify the contract
Any agreement that creates enforceable rights and obligations is a contract. This covers revenue arising from contracts for: - Sale of the Groups products to retail customers, wholesalers or distributors;
- Sale of products under contract manufacturing agreements;
- Divestments of property, plant and equipment and intangible assets.
It does not cover revenue arising on sales of businesses or from collaboration agreements.
- Identify the separate performance obligations in the contract
Performance obligations are the explicit or implicit promises made to the customer or licensee in a contract. In a multi- element arrangement, it is necessary to determine if the promises made are distinct from each other or should be accounted for together as a bundle.
8
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Glaxo Smithkline Consumer Nigeria plc published this content on 30 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2023 16:19:07 UTC.
