01 02 03 Financial Statements 04 25. Equity continued Gains (losses) from sale/acquisition of shares in existing subsidiaries In 2017, as part of the ABC acquisition contract, the selling shareholders have a put option to sell their remaining 33% stake in the combined pharmacy and distribution business to GHG during the period from 1 January 2023 to 31 December 2023. At initial recognition, in accordance with IFRS requirements, the Group recognised GEL 55 million (present value) liability to purchase the remaining 33% shares – included in the payable for share acquisitions caption. The non-controlling interest arising from the consolidated pharmacy and distribution business, GEL 24 million, was fully de-recognised in accordance with IFRS requirements. The difference between the redemption liability of GEL 55 million and the non-controlling interest of GEL 24 million was debited to equity, resulting in a reduction of equity through other reserves by GEL 31 million. All the difference between subsequent changes to the redemption liability and the non-controlling interest is recogniSed in equity in the line “Acquisition of additional interest in existing subsidiaries” – the amount debited to equity equalled GEL 6,583 in 2018. The remaining credit to other reserves during 2018 comprised GEL 114, which represents additional interest acquisition in JSC St. Nicholas Surgery Clinic. As at 31 December 2018, losses from sale/acquisition of shares in existing subsidiaries equalled GEL 48,982 (2017: GEL 42,512). Retained earnings The impact of adoption of IFRS 9, GEL 6,535 was debited to retained earnings as at 1 January 2018, the transition date. Refer to Note 3. Regulatory capital requirements Regulatory capital requirements in Georgia are set by the ISSSA and are applied to Imedi L solely on a stand-alone basis. The ISSSA requirement is to maintain a minimum capital of GEL 2,200, which should be kept in current accounts. A bank confirmation letter is submitted to ISSSA on a quarterly basis in order to prove compliance with the above-mentioned regulatory requirement. Imedi L regularly and consistently complies with the ISSSA regulatory capital requirement. Earnings per share For the purpose of calculating basic earnings per share the Group used profit for the year and total comprehensive income for the year attributable to shareholders of the Company of GEL 34,434 (2017: GEL 29,110) and GEL 34,434 (2017: GEL 24,650), respectively, as a numerator and the weighted average number of shares outstanding during the period ended 31 December 2018 of 128,752,840 (31 December 2017: 128,128,088) as a denominator. For diluted earnings per share, the Group used the same numerator as for basic earnings per share and used the weighted average number of shares outstanding together with the number of shares granted to management during the period ended 31 December 2018 of 131,681,820 (2017: 131,681,820) as a denominator. Excluding the impact of IFRS 9 adoption, 2018 basic and diluted earnings per share (profit for the period) would have been 0.27 and 0.26, respectively (2017: 0.23 and 0.22 respectively). Excluding the impact of IFRS 9 adoption, 2018 basic and diluted earnings per share (total comprehensive income) would have been 0.27 and 0.26, respectively (2017: 0.19 and 0.19, respectively). 26. Healthcare services and pharmacy and distribution revenue Year ended Year ended 31 December 2018 31 December 2017 Healthcare services revenue from state (“UHC”) 204,261 178,818 Healthcare services revenue from out-of-pocket and other 78,500 64,878 Healthcare services revenue from insurance companies 11,917 11,955 Less: Corrections and rebates (3,609) (2,039) Total healthcare services revenue 291,069 253,612 Retail 372,110 329,733 Wholesale 128,980 108,625 Total revenue from pharmacy and distribution 501,090 438,358 The Group has recognised the following revenue-related contract assets and liabilities: 31 December 2018 31 December 2017 Deferred revenues 4,867 4,138 Receivables from healthcare services 106,841 100,944 Receivables from sale of pharmaceuticals 20,440 19,798 Receivables from healthcare services are recognised when the right to consideration becomes unconditional. Deferred revenue is recognised as revenue as the Group performs under the contract. The Group recognised GEL 729 revenue in the current reporting period that relates to carried-forward contract liabilities and is included in deferred revenues. In period ended 31 December 2018, the Group has recognised the following amounts relating to revenue from contracts with customers in the Income Statement: Healthcare services revenue of GEL 291,069; revenue from pharmacy and distribution of GEL 501,090; other operating income from sale of medicine of GEL 447. The Group applies practical expedient mentioned in IFRS 15.121 and does not disclose information about the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied, the original expected duration of the underlying contracts is less than one year. 159