123 Annual Report 2021 • Revenue from fees Income from fees consist of the invoiced amount for charges relating to granting of licenses. Fee income is recognized in the period to which the relevant license has been granted. • Interest income Interest revenue is recognised when it is probable that the economic benefits will flow to the Authority and the amount of revenue can be measured reliably. Interest revenue is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable. Employee benefits The Authority operates a defined benefit plan which will be funded as in the Public Sector, via the Annual Budget. Benefits will be paid on retirement, death or resignation of an employee. The amount of the benefit will depend on the duration of service and the level of income of the employee. The Authority and its employees contribute to the Government Social Insurance Fund based on employees' salaries. In addition, the Authority provides its employees with retirement benefits in the form of a lump sum based on a defined benefit retirement plan. The Authority's contributions are expensed as incurred and are included in staff costs. The Authority has no legal or constructive obligations to pay further contributions if the scheme does not hold sufficient assets to pay all employees benefits relating to employee service in the current and prior periods. The present value of obligations and the cost of current service for the defined benefit plan are estimated annually with the projected unit credit method. Actuarial gains or losses result from changes in the interest rate by which estimated future cash outflows for benefits and other actuarial assumptions are discounted. Non-recorded actuarial gain or loss is recognized by the Authority at the beginning of the year. Finance income Interest income is recognised on a time-proportion basis using the effective method. Finance costs Interest expense and other borrowing costs are charged to profit or loss as incurred. Tax The fees received by the Authority under the Law regulating the Electricity Market and the relevant Regulations, as a result of executing its supervisory role, are not deemed to be income as this is defined in article 5(1)(a) of the Income Tax Law and are not subject to taxation. The same applies to government grants that the Authority has received in order to be able to exercise its supervisory role. Income from rent or any other source, is subject to taxation with the tax rate of 12.5% and to defense contribution, after deducting any allowable deduction as provided by the Law. Current tax liabilities and assets are measured at the amount expected to be paid to or recovered from the taxation authorities, using the tax rates and laws that have been enacted, or substantively enacted, by the reporting date. Property, plant and equipment Property, plant and equipment are stated at historical cost less accumulated depreciation and any accumulated impairment losses.
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