LensCrafters 2015 Annual Report Download - page 109

Notes to the consolidated financial statement as of December 31, 2015 Page 15 di 68
expected return on plan assets, the rates of future compensation increases and rates relative to mortality and resignations. Any
change in the abovementioned assumptions could result in significant effects on the employee benefit liabilities, and
(h) Valuation of provision for risks. The determination of the amount of the accruals requires judgment by
management based on available documentation and information on potential liabilities.
Earnings per share
The Company determines earnings per share and earnings per diluted share in accordance with IAS 33—Earnings per Share.
Basic earnings per share are calculated by dividing profit or loss attributable to ordinary equity holders of the parent entity by
the weighted average number of shares outstanding during the period. For the purpose of calculating the diluted earnings per
share, the Company adjusts the profit and loss attributable to ordinary equity holders, and the weighted average number of
shares outstanding, for the effect of all dilutive potential ordinary shares.
Treasury Shares
Treasury shares are recorded as a reduction of stockholders’ equity. The original cost of treasury shares, as well as gains or
losses on the purchase, sale or cancellation of treasury shares, are recorded in the consolidated statement of changes in equity.
2. NEW ACCOUNTING PRINCIPLES
New and amended accounting standards and interpretations, if not early adopted, must be adopted in the financial statements
issued after the applicable effective date.
New standards and amendments that are effective for reporting periods beginning on January 1, 2015.
The adoption of the new accounting principle and the amendments did not have any significant impact on the consolidated
financial statements of the Group.
IFRIC 21—Levies. The interpretation published by the IASB on May 20, 2013 is applicable to periods starting on or after
June 17, 2014. IFRIC 21 is an interpretation of IAS 37—Provision, Contingent Liabilities and Contingent Assets, which
requires that a provision is booked if, subject to certain other conditions met, an entity has a present obligation as a consequence
of a past event (“obligating event”). The interpretation clarifies that the obligating event that requires an obligation to pay taxes
to be recorded is the activity that determines the tax payments, as set forth by the law. The early adoption of the interpretation
did not have a significant impact on the 2014 consolidated financial statements of the Group.
Annual Improvements to IFRSs—2011-2013 Cycle. The amendments adopted impact: (i) IFRS 3, clarifying that IFRS 3 is
not applicable to detect the accounting effects related to the formation of a joint venture or joint arrangement (as defined by
IFRS 11) in the financial statements of the joint venture or joint arrangement; (ii) IFRS 13, clarifying that the provisions
contained in IFRS 13 whereby it is possible to measure fair value of a group of financial assets and liabilities on a net basis
apply to all contracts (including non-financial contracts) within the scope of IAS 39 or IFRS 9; and (iii) IAS 40, clarifying that,
to determine when buying an investment property constitutes a business combination, reference must be made to the provisions
of IFRS 3.