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3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(continued)
3.5 Business combinations
(continued)
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items
for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see above), or additional assets or liabilities are recognized, to reflect
new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognized at that date.
3.6 Goodwill
Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment losses, if any.
For the purposes of impairment testing, goodwill is allocated to each of the Group's cash-generating units (or groups of cash-generating units) that is expected to benefit from the
synergies of the combination.
A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the
recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit
and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognized directly in profit or loss in the
consolidated statement of profit or loss and other comprehensive income. An impairment loss recognized for goodwill is not reversed in subsequent periods.
On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.
3.7 Cash and Cash Equivalents
Cash and cash equivalents in the statement of financial position comprise of cash at banks and in hand, short-term deposits, reverse repurchase agreements and other liquid assets.
Other liquid assets mainly comprise of checks and notes maturing before balance sheet date. For the purpose of the consolidated statement of cash flows, cash and cash equivalents
consist of cash and cash equivalents as defined above, with an original maturity of three months or less.
3.8 Trade and Other Receivables
Trade receivables which generally have approximately 21 day terms (2013 - 29 day terms) are carried at amortized cost less an allowance for any uncollectible amounts. Provision is
made when there is objective evidence that the Group will not be able to collect the debts. Bad debts are written off when identified.
BORUSAN HOLDING A.Ş. AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2014
(Currency - US Dollars (“USD”) unless otherwise indicated)