[Insert name of company]

Notes to the financial statements

[Insert year end]
1. Corporate Structure and business
Intellicence Mall Limited ("the Company") was incorporated in Nigeria as a private limited liability Company
2019. The Company's registered office address is 24, John Groster Street, Kano, Nigeria. The Company comm
on 14 January 2022.

The object clause of the Company empowers the organization to operate chains of retail stores selling fast m
goods (FMCG) and other merchandise. The company is also allowed to carry out all businesses stated in its M
Articles of Association, with due care and diligence in order to have a positive effect on the Nigerian Financial M

2 Statement of compliance with IFRS

These financial statements have been prepared in accordance with IFRS Accounting Standards as issued by the
Accounting Standards Board (IFRS Accounting Standards) and in the manner required by the Companies and All
2020 and the Financial Reporting Council of Nigeria (Amendment) Act, 2023

3 Composition of financial statements

This financial statements are presented in Naira, which is the Company's functional currency. Except as indicate
financial statements, financial information presented in Naira has been rounded to the nearest thousand. The fin
statements comprise:
- Statement of profit or loss & other comprehensive income
- Statement of financial position
- Statement of changes in equity
- Statement of cash flows
- Notes to the financial statements

3.1 Financial period

These financial statements cover the period from 1 January 2024 to 31 December 2024 with comparative figure
year from 1 January 2023 to 31 December 2023.

4 Use of estimates and judgements

In preparing these financial statements, management has made judgements and estimates that affect the appli
Company's accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual resu
from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised

(i) Judgements
Information about judgements made in applying accounting policies that have the most significant effect
recognised in the financial statements is described in the following note.
• Note 4-

(ii) Assumptions and estimation uncertainties

In particular, information about assumptions, estimation uncertainties and critical judgments in applying accoun
have the most significant effect on the amounts recognised in the financial statements relate to;
• Determination of fair value (See Note 5)

14
[Insert name of company]
Notes to the financial statements
[Insert year end]

5 Measurement of fair values

The Chief Finance Officer regularly reviews significant unobservable inputs and valuation adjustments. If third p
such as broker quotes or pricing services, is used to measure fair values, the Chief Finance Officer asses
obtained from the third parties to support the conclusion that such valuations meet the requirements of
Standards, including the level in the fair value hierarchy in which such valuations should be classified. Sig
issues are reported to the Board of Directors.

When measuring the fair value of an asset or a liability, the Company uses observable data as far as possible. F
categorized into different levels in a fair value hierarchy based on the inputs used in the valuation technique as

* Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
* Level 2: input other than quoted prices included in level 1 that are observable for the assets or liability, either
prices) or indirectly (i.e. as derived from prices).
* Level 3: inputs for the assets or liability that are not based on observable market data (unobservable inputs).

If the input used to measure fair value of an asset or a liability might be categorized in different levels of the fair
then the fair value measurement must be categorized in its entirety in the same level of the fair value hierarchy
level input that is significant to the entire measurement.

Further information about the assumptions made in measuring fair values is included in Note XXXX - Financial ri
and financial instruments.

6 Summary of material accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these financial

(a) Foreign currency transactions

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
monetary assets and liabilities denominated in foreign currencies at year end are generally recognised in profit
deferred in equity if attributable to net investment in foreign operations.

Foreign exchange gains and losses that relate to borrowings are presented in the statement of profit or loss, wit
costs. Foreign exchange gains or losses on investments are presented as part of finance income while all other
gains and losses are presented within other income/expenses both in the statement of profit or loss .

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rat
when the fair value was determined. Translation differences on assets and liabilities carried at fair value are rep
the fair value gain or loss or other comprehensive income depending on where fair value gain or loss is reported

(b) Financial instruments

(a) Classification and measurement

Financial assets
It is the Company's policy to initially recognise financial assets at fair value plus transaction costs, except in the
assets recorded at fair value through profit or loss (FVTPL) which are expensed in profit or loss.

Classification and subsequent measurement is dependent on the Company's business model for managing t
cash flow characteristics of the asset. On this basis, the Company may classify its financial instruments at am
value through profit or loss and at fair value through other comprehensive income.

15
[Insert name of company]
Notes to the financial statements
[Insert year end]

Business model: The business model reflects how the Company manages the assets in order to generate ca
whether the objective is solely to collect the contractual cash flows from the assets or to collect both the contr
and cash flows arising from the sale of assets. If neither of these is applicable (e.g. financial assets are
purposes), then the financial assets are classified as part of ‘other’ business model and measured at FVTPL. Fa
by the Company in determining the business model for the financial assets include past experience on how cas
assets were collected, how the assets performance is evaluated and reported to key management personnel a
assessed and managed.

Solely Payments of Principal and Interest: Where the business model is to collect contractual cash flows, the C
whether the financial instruments’ cash flows represent solely payments of principal and interest. In making this
Company considers whether the contractual cash flows are consistent with a basic lending arrangement i.e.
only consideration for the time value of money, credit risk, other basic lending risks and a profit margin that is
basic lending arrangement. Where the contractual terms introduce exposure to risk or volatility that are inconsi
lending arrangement, the related financial asset is classified and measured at FVTPL.

Based on these factors, the Company classifies its debt instruments into one of the following measurement cate
Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent so
principal and interest are measured at amortised cost. A gain or loss due to impairment or upon derecognit
asset is recognised in profit or loss. Interest income from these financial assets is included in finance income u
interest rate method.

Fair value through other comprehensive income: Assets in this category are held to collect contractual cash flow
there are advantageous opportunities. A gain or loss on a financial asset is recognised in other comprehensiv
impairment gains or losses and foreign exchange gains or losses in the year in which it arises. Interest in
financial assets is included in finance income.

Fair value through profit or loss: Assets that do not meet the criteria for amortised cost or fair valu
comprehensive income are measured at fair value through profit or loss. A gain or loss on a financial asset is re
or loss and presented net in the profit or loss statement within other income/(expenses) in the year in which
income from these financial assets is included in finance income.

The Company reclassifies its financial assets when and only when its business model for managing those asse
changes are expected to be infrequent.

All the Company’s financial assets as at the reporting dates are XXXX and they satisfy the conditions for
amortised cost under IFRS 9. They are included in current assets, except for maturities greater than 12
reporting date which are included in non-current assets.

Financial liabilities
Financial liabilities of the Company are classified and measured at fair value on initial recognition net of dir
transaction costs and subsequently measured at amortised cost.
Fair value gains or losses for financial liabilities designated at fair value through profit or loss are accounted fo
except for the amount of change that is attributable to changes in the Company’s own credit risk which is p
comprehensive income. The remaining amount of change in the fair value of the liability is presented in p
Company’s financial liabilities include XXXX. The Company has no financial liabilities measured at fair value
loss.

16
[Insert name of company]
Notes to the financial statements
[Insert year end]

(b) Impairment of financial assets

Recognition of impairment provisions under IFRS 9 is based on the expected credit loss (ECL) model. This
financial assets classified at amortised cost. The measurement of ECL reflects an unbiased and probability-weig
is determined by evaluating a range of possible outcomes, time value of money and reasonable and suppor
that is available without undue cost or effort at the reporting date, about past events, current conditions and fo
economic conditions.

The simplified approach is applied to all trade related receivables while the general approach is applied to othe
cash and cash equivalents

The simplified approach requires expected lifetime losses to be recognised from initial recognition of the
involves determining the expected loss rates using a provision matrix that is based on the Company’s histor
observed over the expected life of the receivable and adjusted forward-looking estimates. This is then app
carrying amount of the receivable to arrive at the loss allowance for the year.

The three-stage approach assesses impairment based on changes in credit risk since initial recognition us
criterion and other qualitative indicators such as increase in political concerns or other macroeconomic facto
legal action, sanction or other regulatory penalties that may impair future financial performance. Financial as
stage 1 have their ECL measured as 12 month ECL which is a proportion of their lifetime ECL that results from
events that can occur within one year, while assets in stage 2 or 3 have their ECL measured on a lifetime basis.

Under the three-stage approach, the ECL is determined by projecting the probability of default (PD), loss given d
exposure at default (EAD) for each ageing bucket and for each individual exposure. The PD is based on default
by external rating agencies for the counterparties. The LGD is determined based on management’s estimate
recoveries after considering the historical pattern of the receivable, and it assesses the portion of the outsta
that is deemed to be irrecoverable at the reporting year. The EAD is the total amount of outstanding receivable
year. These three components are multiplied together and adjusted for forward looking information, to arrive a
then discounted back to the reporting date and summed. The discount rate used in the ECL calculation is the
interest rate or an approximation thereof.

Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amou
financial assets and the amount of the loss is recognised in profit or loss.

(c) Significant increase in credit risk and definition of default

The Company assesses the credit risk of financial assets based on the information obtained during yearly r
available information, industry trends and payment records. Based on the analysis of the information provid
identifies the assets that require close monitoring.

Furthermore, financial assets that have been identified to be more than 30 days past due on contractual payme
to have experienced significant increase in credit risk. These assets are classified as part of Stage 2 financial
three-stage approach is applied.
Financial assets are defined to be in default when contractual payments have not been received at least 9
contractual payment year. Subsequent to default, the Company carries out active recovery strategies to recov
payments due on receivables. Where the Company determines that there are no realistic prospects of recov
assets and any related loss allowances are written off either partially or in full.

17
[Insert name of company]
Notes to the financial statements
[Insert year end]
(d) Derecognition
Financial assets
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial ass
when it transfers the financial asset and the transfer qualifies for derecognition. Gains or losses on derecognitio
assets are recognised in profit or loss.

Financial liabilities
The Company derecognises a financial liability when it is extinguished i.e. when the obligation specified in the c
discharged or cancelled or expires. When an existing financial liability is replaced by another from the same len
substantially different terms, or the terms of an existing liability are substantially modified, such an exchange o
treated as a derecognition of the original liability and the recognition of a new liability. The difference in the resp
amounts is recognised immediately in the statement of profit or loss.

(e) Modification
When the contractual cash flows of a financial instrument are renegotiated or otherwise modified and the
modification does not result in the derecognition of that financial instrument, the Company recalculates th
amount of the financial instrument and recognises a modification gain or loss immediately within finance inc
the date of the modification. The gross carrying amount of the financial instrument is recalculated as the pre
renegotiated or modified contractual cash flows that are discounted at the financial instrument’s original effecti

(f) Offsetting of financial assets and financial liabilities

Financial assets and liabilities are offset and the net amount is reported in the statement of financial position.
applied when there is a legally enforceable right to offset the recognised amounts, and there is an intention t
basis or realise the asset and settle the liability simultaneously.

The legally enforceable right is not contingent on future events and is enforceable in the normal course of bus
event of default, insolvency or bankruptcy of the Company or the counterparty.

(c) Property, plant and equipment

(i) Recognition, measurement and derecognition

Items of property, plant and equipment are measured at cost which includes capitalised borrowing cost l
depreciation and accumulated impairment losses.

Property, plant and equipment comprise tangible items that are held for use in the production or supply of good
for administrative purposes and are expected to be used during more than one accounting period.

Cost includes expenditure that is directly attributable to the acquisition of the asset. Property, plant and
construction are disclosed as capital work-in-progress.

The cost of self-constructed assets includes the cost of materials, direct labour and any other costs directly attri
bringing the assets to a working condition for their intended use including, where applicable, the costs of disman
removing the items and restoring the site on which they are located.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as se
(major components) of property, plant and equipment.

The Company derecognises property, plant & equipment from the statement of financial position on disposal or
withdrawn from use and no future economic benefits are expected from its disposal. Gains or losses on disposal
property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amou
plant and equipment, and are recognised in profit or loss.

18
[Insert name of company]
Notes to the financial statements
[Insert year end]

(ii) Subsequent costs

The cost of replacing a part of an item of property, plant and equipment is recognized in the carrying amount of
probable that the future economic benefits embodied within the part will flow to the Company and its cost can b
reliably. The carrying amount of the replaced part is derecognised. The costs of the day-to-day servicing of prop
equipment are recognized in profit or loss as incurred.

(iii) Depreciation
Items of property, plant and equipment are depreciated from the date that they are available for use or, in resp
constructed assets, from the date that the asset is completed and ready for use. Depreciation is calculated on th
amount, which is the cost of an asset, or other amount substituted for cost.

Depreciation is recognized in profit or loss on a straight-line basis over the estimated useful lives of each part of
property, plant and equipment which reflects the expected pattern of consumption of the future economic bene
the asset.

Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably ce
Company will obtain ownership by the end of the lease term in which case the assets are depreciated over the u
Depreciation methods, useful lives and residual values are reviewed at each financial year end and adjusted if a
is not depreciated.

The estimated useful lives of property, plant and equipment for the current period are as follows:

Class of assets Useful lives

Plant & equipment 10 years
Buildings 20 years
IT Equipment 5 years
Motor vehicles 5 years
Furniture & fittings 4 years

(d) Leases
At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or c
the contract conveys the right to control the use of an identified asset for a year of time in exchange for conside
whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

– the contract involves the use of an identified asset: this may be specified explicitly or implicitly, and should be
distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substanti
right, then the asset is not identified;
– the Company has the right to obtain substantially all of the economic benefits from use of the asset throughou
and
– the Company has the right to direct the use of the asset. The Company has this right when it has the decis
that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decisio
for what purpose the asset is used is predetermined, the Company has the right to direct the use of the asset if

- the Company has the right to operate the asset; or

- the Company designed the asset in a way that predetermines how and for what purpose it will be used.
At inception or on reassessment of a contract that contains a lease component, the Company allocates the co
contract to each lease component on the basis of their relative stand-alone prices. However, for the
station(property) in which it is a lessee, the Company has elected not to separate non-lease components an
lease and non-lease components as a single lease component.

19
[Insert name of company]
Notes to the financial statements
[Insert year end]

As a lessee
The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The rig
initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease paym
before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle
underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives re

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement dat
the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of ri
are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is per
by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the com
discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Compa
borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:
– fixed payments, including in-substance fixed payments;
– variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the
date;
– amounts expected to be payable under a residual value guarantee; and
– the exercise price under a purchase option that the Company is reasonably certain to exercise, lease payme
renewal year if the Company is reasonably certain to exercise an extension option, and penalties for early term
unless the Company is reasonably certain not to terminate early.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when the
future lease payments arising from a change in an index or rate, if there is a change in the Company’s estima
expected to be payable under a residual value guarantee, or if the Company changes its assessment of whethe
purchase, extension or termination option.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amou
use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zer

Short-term leases and leases of low-value assets

The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of pro
lease term of 12 months or less and leases of low-value assets. The Company recognises the lease payment
these leases as an expense on a straight-line basis over the lease term.

Short-term leases are those leases that have a lease term of 12 months or less from the commencement
contain a purchase option. Lease payments on short-term leases and leases of low-value assets would b
expenses in profit or loss on a straight-line basis over the lease term. The Company has short term leases and l

Extension and termination options

Extension and termination options are included in the Company's lease arrangements. These are used to max
flexibility in terms of managing the assets used in the Company’s operations. Most of the extension option
mutual agreement by the lessee and lessor and some of the termination options held are exercisable by both pa

(e) Provision, contingencies and decommissioning costs

Provisions
A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligati
estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligatio
XXXX).

20
[Insert name of company]
Notes to the financial statements
[Insert year end]

Provisions for environmental restoration, restructuring costs and legal claims are recognised when: the Compan
legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be requ
obligation; and the amount has been reliably estimated. Restructuring provisions comprise lease termination pe
employee termination payments. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is d
considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with
one item included in the same class of obligations may be small.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligatio
rate that reflects current market assessments of the time value of money and the risks specific to the obligation
the provision due to passage of time is recognised as interest expense.

Contingent liabilities
Contingent liabilities are possible obligations whose existence will only be confirmed by future events not wholly
control of the Company. Contingent liabilities are not recognised in the financial statements but are disclosed. H
the possibility of an outflow is remote, the contingent liability is neither disclosed nor recognised.

Contingent assets
Contingent assets are possible assets that arise from past events whose existence will be confirmed only by the
non-occurrence of one or more uncertain future events not wholly within the control of the entity. Contigent ass
disclosed when an inflow of economic benefit is probable. Asset is recognised when the realisation of income is
in which case the related asset is no more contingent.

Decommissioning costs
Provision is made for decommissioning costs on dismantling the XXXX at the end of its useful life based on estim
by the contractors of the XXXX and industry practices. Provision for decommissioning costs is initially measured
capitalised to property, plant and equipment as an asset retirement cost. The liability is estimated by disco
future cash flows required to settle the liability using a risk-free rate. The estimated future asset retireme
adjusted for risks such as project, physical, regulatory and timing. The estimates are reviewed periodically
provision as a result of changes in the estimated future costs or discount rates are added to or deducted from
related item of property, plant and equipment in the period of change. The liability accretes for the effect of tim
until it is expected to settle.

The asset retirement cost is amortised through depreciation over the life of the related asset. Actual
expenditures are recorded against the obligation when incurred. Any difference between the accrued liabilit
expenditures incurred is recorded in profit or loss in the settlement period.

(f) Finance income and finance costs

Finance income comprises interest income on funds invested and net gains on foreign exchange differences. Int
recognised as it accrues in profit or loss, using the effective interest method.
Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions. Borrowing cos
directly attributable to the acquisition, construction or production of a qualifying asset, are recognised in profit o
effective interest method.

Foreign currency gains and losses are reported as either finance costs or finance income or other income depen
nature (See Note XXXX).

21
[Insert name of company]
Notes to the financial statements
[Insert year end]
(g) Income taxes
Income tax expense comprises current tax (Companies' Income Tax, Tertiary Education and Nigeria Police Trust
deferred tax. It is recognised in profit or loss except to the extent that it relates to a business combination, or ite
directly in equity or in other comprehensive income.

The Company had determined that interest and penalties relating to income taxes, including uncertain tax treat
meet the definition of income taxes, and therefore are accounted for under IAS 37 Provisions, Contingent Liabilit
Contingent Assets.

Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year, and an
tax payable or receivable in respect of previous years.

The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or r
reflects uncertainty related to income taxes, if any.
It is measured using tax rates enacted or substantively enacted at the reporting date and is assessed as follows
* Company income tax is computed on taxable profits
* Tertiary education tax is computed on assessable profits
* National Agency for Science and Engineering Infrastructure (NASENI) Levy
* Nigeria Police Trust Fund (NPTF) levy is computed on net profit (i.e. profit after deducting all expenses and tax
earned by the company during the year).

Total amount of tax payable under the Companies' Income Tax Act (CITA) is determined based on the higher of
namely Company Income Tax (based on taxable income (or loss) for the year); and minimum tax. Taxes based o
period are treated as income tax in line with IAS 12.

Minimum tax
Minimum tax which is based on a gross amount is outside the scope of IAS 12 and therefore, are not presented
tax expense in the profit or loss.
In line with the Finance Act, minimum tax is determined at a base rate of 0.25% of the qualifying company’s gro
franked investment income. The Finance Act defines gross turnover as the gross inflow of economic benefits (ca
receivables and other assets) arising from the operating activities of a Company, including sales of goods, suppl
receipt of interest, rents, royalties or dividends.

Where the minimum tax charge is higher than the Company Income Tax (CIT), a hybrid tax situation exists. In th
CIT is recognised in the income tax expense line in the profit or loss and the excess amount is presented above
line as minimum tax.

The Company offsets the tax assets arising from withholding tax (WHT) credits and current tax liabilities if, and
has a legally enforceable right to set off the recognised amounts, and intends either to settle on a net basis, or t
asset and settle the liability simultaneously. The tax asset is reviewed at each reporting date and written down
it is no longer probable that future economic benefit would be realised.

NASENI Levy
The National Agency for Science and Engineering Infrastructure (NASENI) Act Cap N3 LFN 2004 (“the Act”) of 19
imposes a levy of 0.25% of profits before tax of commercial companies and firms with turnovers of N100,000,00
sectors, including banking, telecommunications, ICT, aviation, maritime, and oil and gas.

22
[Insert name of company]
Notes to the financial statements
[Insert year end]

Deferred tax
Deferred tax is the future tax consequences of temporary differences between the carrying amounts and tax ba
liabilities shown on the statement of financial position. Deferred tax assets and liabilities are not recognised if th
following situations: the initial recognition of goodwill; or the initial recognition of assets and liabilities that affec
accounting nor taxable profit. The amount of deferred tax provided is based on the expected manner of recover
of the carrying amount of assets and liabilities, using tax rates enacted or substantially enacted at the statemen
position date.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be availab
the asset can be utilised.

Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differen
that it is probable that future taxable profits will be available against which they can be used. Future taxable pro
determined based on the reversal of relevant taxable temporary differences. If the amount of taxable temporary
insufficient to recognise a deferred tax asset in full, then future taxable profits, adjusted for reversals of existing
differences, are considered, based on the business plans approved by the board for the Company.

Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer p
related tax benefit will be realised; such reductions are reversed when the probability of future taxable
Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent tha
probable that future taxable profits will be available against which they can be used.

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they r
rates enacted or substantively enacted at the reporting date. The measurement of deferred tax reflects the t
that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the
of its assets and liabilities.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
tax liabilities and when the deferred taxes assets and liabilities relate to income taxes levied by the same taxati
either the same taxable entity or different taxable entities where there is an intention to settle the balances on

(h) Statement of cash flows

The statement of cash flows is prepared using the indirect method. Changes in statement of financial position it
not resulted in cash flows have been eliminated for the purpose of preparing the statement. Finance costs paid
financing activities while finance income is included in investing activities.

(i) Share capital

The Company has only one class of shares, ordinary shares. Ordinary shares are classified as equity. When new
issued, they are recorded in share capital at their par value. The excess of the issue price over the par value is r
premium.

Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity
effects.

(j) Other reserves

Other reserves are cash contributions made by equity subscribers of the Company. Other reserves are only clas
it is certain that the depositors have relinquished their rights to withdraw their contributions.

(k) Employee benefits

(i) Short-term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the am
to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past se
by the employee and the obligation can be estimated reliably.

23
[Insert name of company]
Notes to the financial statements
[Insert year end]

(ii) Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which the Company pays fixed contribution
entity. The Company has no legal or constructive obligations to pay further contributions if the fund does not ho
assets to pay all employees the benefits relating to employee service in the current and prior periods.

In line with the provisions of the Pension Reform Act 2014, the Company has instituted a defined contribution pe
for its permanent staff. Employees contribute 8% of their Basic salary, Transport and Housing Allowances to the
monthly basis. The Company’s contribution is 10% of each employee’s Basic salary, Transport and Housing Allow
contributions to the scheme are funded through payroll deductions while the Company’s contribution is recognis
loss as staff costs in the periods during which services are rendered by employees.

Gratuity scheme
The Company operates a gratuity scheme for its full time employees in service. Lump-sum is calculated based o
gross salary for each completed year of service and payable to eligible employees at the point of separation from
Eligible employees are full-time employees whose appointment have been confirmed (i.e. no longer under proba
payable to any personnel employed by a third party provider, self-employed contractors or employees who have
dismissed through internal disciplinary or capability proceedings including summary dismissal for gross miscond
negligence. The defined benefit obligation is calculated annually by independent actuaries.

(iii) Other long-term employee benefits

The Company’s net obligation in respect of long-term employee benefits is the amount of future benefit that em
earned in return for their service in the current and prior periods. That benefit is discounted to determine its pre
Remeasurements are recognized in profit or loss in the period in which they arise. The Company’s other long-ter
benefits represents a Long Service Award scheme for a minimum milestone of ten (10) years. These schemes ar
all permanent employees. The calculation is performed using the Projected Unit Credit method. This Scheme is n
obligations are paid out of the Company’s cash flows as and when due.

(iv) Termination benefits

Termination benefits are expensed at the earlier of when the Company can no longer withdraw the offer of thos
when the company recognizes costs for a restructuring. If benefits are not expected to be settled wholly within 1
reporting date, then they are discounted.

(l) Inventories
Inventories are measured at the lower of cost and net realisable value. The cost of the consumer goods and oth
includes purchase price, transportation and other costs required to bring the items to the intended location and
realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of com
selling expenses.

Inventories are stated at the lower of cost and net realisable value. The cost of materials is the purchase cost, d
first-in, first-out basis. The net realisable value of the Company's products is based on the estimated selling pric
course of business less the estimated costs necessary to make the sale.

Pipeline fill and Deadstock

Crude oil, which is necessary to bring a pipeline or tank into working order, is treated as a part of the related pip
This is on the basis that it is not held for sale or consumed in a production process, but is necessary to the opera
during more than one operating cycle, and its cost cannot be recouped through sale (or is significantly impaired
even if the part of inventory that is deemed to be an item of property, plant and equipment cannot be separated
the rest of inventory. It is valued at cost and subjected to depreciation to its estimated residual value. The Comp
that the residual value of the crude oil is recoverable in full at the point of decommissioning the asset. As such,
will only be recorded if the value decreases below the cost during the life of the facility.

24
[Insert name of company]
Notes to the financial statements
[Insert year end]
m Revenue
Revenue is obtained from the sale of fast moving consumer goods and other merchandise through chains of ret
Performance obligation and revenue recognition policies:
Type of products Revenue recognition policies
Sales of fast moving consumer Revenue is recognised when control over the goods is transferred to the buye
goods
(n) Operating profit/(Loss)
Operating profit/(loss) is the result generated (or incurred) from the continuing principal revenue-producing acti
Company as well as other income and expenses related to operating activities. Operating profit/(loss) excludes fi
finance income and other income.

7.1 New and amended IFRS Standards that are effective for the current year.
The Company has not early adopted any standard, interpretation or amendment that has been issued but is
Several amendments and interpretations apply for the first time in XXXX, but do not have any material impac
statements of the Company.
7.2.1 Newly currently effective requirements
Certain new accounting standards and interpretations have been published that are not effective for Decembe
year and have not been early adopted by the Company. The Directors do not expect the new accountin
interpretations to have a material impact on its current or future reporting years. Details of these new
interpretations are set out below:

– IFRS 17, Insurance Constracts

IFRS 17 requires insurance liabilities to be measured at a current fulfillment value and provides a more uniform
and presentation approach for all insurance contracts. These requirements are designed to achieve the goal of a
principle-based accounting for insurance contracts. IFRS 17 supersedes IFRS 4 Insurance Contracts as of 1 Janua
– Disclosure of Accounting Policies (Amendment to IAS 1 and IFRS Practice Statement 2)
The amendments require that an entity discloses its material accounting policies, instead of its significant accou
Further amendments explain how an entity can identify a material accounting policy. Examples of when an acco
likely to be material are added. To support the amendment, the Board has also developed guidance and examp
demonstrate the application of the ‘four-step materiality process’ described in IFRS Practice Statement 2.
– Disclosure of Accounting Estimates (Amendment to IAS 8)
The amendments replace the definition of a change in accounting estimates with a definition of accounting estim
new definition, accounting estimates are “monetary amounts in financial statements that are subject to measur
uncertainty”. Entities develop accounting estimates if accounting policies require items in financial statements t
in a way that involves measurement uncertainty. The amendments clarify that a change in accounting estimate
new information or new developments is not the correction of an error.
– Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to I
The amendments clarify that the initial recognition exemption does not apply to transactions in which equal am
deductible and taxable temporary differences arise on initial recognition.
– International Tax Reform — Pillar Two Model Rules (Amendments to IAS 12)
The amendments provide a temporary exception to the requirements regarding deferred tax assets and liabilitie
pillar two income taxes.

7.2.2 New standards, amendments and interpretations not yet effective

The following new and amended standards are not expected to have a significant impact on the Company’s fina
– Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)
– Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)
– Non-current Liabilities with Covenants (Amendments to IAS 1)
– Lack of Exchangeability (Amendments to IAS 21)

25
 limited liability Company on 6 September
eria. The Company commenced operations

retail stores selling fast moving consumer

businesses stated in its Memorandum and
n the Nigerian Financial Market.

tandards as issued by the International

by the Companies and Allied Matters Act,

rrency. Except as indicated in these

nearest thousand. The financial

4 with comparative figures for the financial

mates that affect the application of the

and expenses. Actual results may differ

estimates are recognised prospectively.

e most significant effect on the amounts

gments in applying accounting policies that

s relate to;

26
ion adjustments. If third party information,
ef Finance Officer assesses the evidence
eet the requirements of IFRS Accounting
should be classified. Significant valuation

data as far as possible. Fair values are

he valuation technique as follows:

e assets or liability, either directly (i.e. as

ta (unobservable inputs).

different levels of the fair value hierarchy,

of the fair value hierarchy as the lowest

n Note XXXX - Financial risk management

esented in these financial statements.

change rates at the dates of the

transactions and from the translation of
erally recognised in profit or loss. They are

ement of profit or loss, within finance

ce income while all other foreign exchange
profit or loss .

ed using the exchange rates at the date

arried at fair value are reported as part of
ue gain or loss is reported.

action costs, except in the case of financial

t or loss.

ss model for managing the asset and the

nancial instruments at amortised cost, fair

27
 s in order to generate cash flows. That is,
r to collect both the contractual cash flows
e.g. financial assets are held for trading
nd measured at FVTPL. Factors considered
ast experience on how cash flows for these
management personnel and how risks are

tractual cash flows, the Company assesses

nd interest. In making this assessment, the
lending arrangement i.e. interest includes
nd a profit margin that is consistent with a
volatility that are inconsistent with a basic

lowing measurement categories:

se cash flows represent solely payments of
ment or upon derecognition of a financial
uded in finance income using the effective

ollect contractual cash flows and sell where

ed in other comprehensive income except
hich it arises. Interest income from these

ortised cost or fair value through other

s on a financial asset is recognised in profit
ses) in the year in which it arises. Interest

for managing those assets changes. Such

satisfy the conditions for classification at

turities greater than 12 months after the

tial recognition net of directly attributable

t or loss are accounted for in profit or loss

own credit risk which is presented in other
liability is presented in profit or loss. The
s measured at fair value through profit or

28
dit loss (ECL) model. This is applicable to
ased and probability-weighted amount that
d reasonable and supportable information
, current conditions and forecasts of future

pproach is applied to other receivables and

nitial recognition of the receivables. This

on the Company’s historical default rates
timates. This is then applied to the gross

nce initial recognition using the past due

her macroeconomic factors and the risk of
performance. Financial assets classified as
time ECL that results from possible default
sured on a lifetime basis.

f default (PD), loss given default (LGD) and

he PD is based on default rates determined
management’s estimate of expected cash
the portion of the outstanding receivable
of outstanding receivable at the reporting
ng information, to arrive at an ECL which is
the ECL calculation is the original effective

the gross carrying amount of the related

obtained during yearly review of publicly

of the information provided, the Company

due on contractual payments are assessed

part of Stage 2 financial assets where the

been received at least 90 days after the

overy strategies to recover all outstanding
alistic prospects of recovery, the financial

29
 ows from the financial asset expire or
or losses on derecognition of financial

bligation specified in the contract is

nother from the same lender on
ified, such an exchange or modification is
The difference in the respective carrying

erwise modified and the renegotiation or

Company recalculates the gross carrying
diately within finance income/(cost)-net at
s recalculated as the present value of the
strument’s original effective interest rate.

ment of financial position. Offsetting can be

and there is an intention to settle on a net

the normal course of business, and in the

pitalised borrowing cost less accumulated

oduction or supply of goods and services or

nting period.

set. Property, plant and equipment under

y other costs directly attributable to

icable, the costs of dismantling and

ey are accounted for as separate items

ial position on disposal or when it is

ains or losses on disposal of an item of
sal with the carrying amount of property,

30
 in the carrying amount of the item if it is
ompany and its cost can be measured
y-to-day servicing of property, plant and

vailable for use or, in respect of self

eciation is calculated on the depreciable

useful lives of each part of an item of

the future economic benefits embodied in

unless it is reasonably certain that the

are depreciated over the useful life.
year end and adjusted if appropriate. Land

as follows:

lease. A contract is, or contains, a lease if

me in exchange for consideration. To assess
pany assesses whether:

r implicitly, and should be physically

e supplier has a substantive substitution

use of the asset throughout the year of use;

ght when it has the decision-making rights
e cases where the decision about how and
ect the use of the asset if either:

pose it will be used.

Company allocates the consideration in the
prices. However, for the leases of retail
non-lease components and account for the

31
mencement date. The right-of-use asset is
justed for any lease payments made at or
ate of costs to dismantle and remove the
ss any lease incentives received.

m the commencement date to the earlier of

stimated useful lives of right-of-use assets
he right-of-use asset is periodically reduced
bility.

t are not paid at the commencement date,

ly determined, the Company’s incremental
count rate.

the index or rate as at the commencement

to exercise, lease payments in an optional

d penalties for early termination of a lease

It is remeasured when there is a change in

in the Company’s estimate of the amount
its assessment of whether it will exercise a

ade to the carrying amount of the right-of-

et has been reduced to zero.

short-term leases of property that have a

gnises the lease payments associated with

rom the commencement date and do not

ow-value assets would be recognised as
as short term leases and low value lease.

s. These are used to maximise operational

st of the extension options are subject to
are exercisable by both parties.

gal or constructive obligation that can be

red to settle the obligation (See Note

32
gnised when: the Company has a present
w of resources will be required to settle the
prise lease termination penalties and
sses.

required in settlement is determined by

kelihood of an outflow with respect to any

ired to settle the obligation using a pre-tax

s specific to the obligation. The increase in

y future events not wholly within the

ments but are disclosed. However, when
ecognised.

be confirmed only by the occurrence or

the entity. Contigent assets are only
e realisation of income is virtually certain,

s useful life based on estimates established

costs is initially measured at fair value and
lity is estimated by discounting expected
ted future asset retirement costs may be
are reviewed periodically. Changes in the
added to or deducted from the cost of the
cretes for the effect of time value of money

e related asset. Actual asset retirement

tween the accrued liability and the actual

exchange differences. Interest income is

provisions. Borrowing costs that are not

, are recognised in profit or loss using the

me or other income depending on their

33
n and Nigeria Police Trust Fund levy) and
usiness combination, or items recognised

luding uncertain tax treatments, do not

visions, Contingent Liabilities and

or loss for the year, and any adjustment to

nt expected to be paid or received that

and is assessed as follows:

cting all expenses and taxes from revenue

ed based on the higher of two components

nimum tax. Taxes based on profit for the

refore, are not presented as part of income

qualifying company’s gross turnover less

w of economic benefits (cash, revenues,
ding sales of goods, supply of services,

d tax situation exists. In this situation, the

mount is presented above the income tax

rrent tax liabilities if, and only if, the entity

o settle on a net basis, or to realise the
ng date and written down to the extent that

LFN 2004 (“the Act”) of 1992 (as amended)

turnovers of N100,000,000 in certain
as.

34
 rying amounts and tax bases of assets and
es are not recognised if they arise in the
ts and liabilities that affect neither
pected manner of recovery or settlement
y enacted at the statement of financial

able profits will be available against which

uctible temporary differences to the extent

e used. Future taxable profits are
ount of taxable temporary differences is
ed for reversals of existing temporary
e Company.

tent that it is no longer probable that the

ability of future taxable profits improves.
ognised to the extent that it has become

ry differences when they reverse, using tax

deferred tax reflects the tax consequences
te, to recover or settle the carrying amount

o offset current tax assets against current

levied by the same taxation authority on
to settle the balances on a net basis.

ent of financial position items that have

ment. Finance costs paid are included in

fied as equity. When new shares are

rice over the par value is recorded in share

s a deduction from equity, net of any tax

her reserves are only classified as equity if

utions.

ty is recognized for the amount expected

mount as a result of past service provided

35
 ny pays fixed contributions into a separate
ns if the fund does not hold sufficient
nd prior periods.

d a defined contribution pension scheme

Housing Allowances to the Fund on a
ansport and Housing Allowances. Staff
y’s contribution is recognised in profit or

sum is calculated based on 16% of annual

he point of separation from employment.
i.e. no longer under probation). It is not
rs or employees who have been formally
smissal for gross misconduct or gross
aries.

t of future benefit that employees have

unted to determine its present value.
Company’s other long-term employee
) years. These schemes are instituted for
method. This Scheme is not funded and

withdraw the offer of those benefits and

be settled wholly within 12 months of the

consumer goods and other merchandise

the intended location and condition. Net
he estimated costs of completion and

als is the purchase cost, determined on a

the estimated selling price in the ordinary

as a part of the related pipeline or tank.

t is necessary to the operation of a facility
or is significantly impaired). This applies
ment cannot be separated physically from
d residual value. The Company considers
oning the asset. As such, any depreciation
y.

36
dise through chains of retails stores

is transferred to the buyer.

al revenue-producing activities of the

ing profit/(loss) excludes finance costs,

t has been issued but is not yet effective.

have any material impact on the financial

not effective for December 2023 reporting

xpect the new accounting standards and
ars. Details of these new standards and

provides a more uniform measurement

ed to achieve the goal of a consistent,
ce Contracts as of 1 January 2023.
tatement 2)
ead of its significant accounting policies.
Examples of when an accounting policy is
ped guidance and examples to explain and
actice Statement 2.

finition of accounting estimates. Under the

hat are subject to measurement
s in financial statements to be measured
ge in accounting estimate that results from

ction (Amendments to IAS 12)

actions in which equal amounts of

)
ed tax assets and liabilities related to

act on the Company’s financial statements.

37