Page 115 - S P Setia Annual Report 2013
P. 115

Annual Report 2013 S P SETIA BERHAD GROUP Financial Statements | 113





NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2013 (CONT’D)






1. SiGniFicant accOUntinG POlicieS (cOnt’D)

(s) Share capital
Ordinary shares are recorded at nominal value and proceeds received in excess, if any, of the nominal value of shares issued, are
accounted for as share premium. Both ordinary shares and share premium are classifed as equity. Costs incurred directly attributable
to the issuance of the shares are accounted for as a deduction from share premium, if any, otherwise it is charged to proft or loss.

Dividends to shareholders are recognised in equity in the period in which they are declared.

(t) income recognition
(i) Revenue from construction contracts and sale of development properties which are under development is recognised on the
percentage of completion method, where the outcome of the contracts and development projects can be reliably estimated.

Revenue from construction contracts represents the proportionate contract value on construction contracts attributable to the
percentage of contract work performed during the fnancial year.

Revenue from the sale of development properties represents the proportionate sales value of development properties sold
attributable to the percentage of development work performed during the fnancial year.

(ii) Revenue from the sale of completed development properties is measured at the fair value of the consideration receivable and is
recognised in proft or loss when the signifcant risks and rewards of ownership have been transferred to the buyer.

(iii) Revenue from the sale of goods is measured at the fair value of the consideration receivable and is recognised in proft or loss
when the signifcant risks and rewards of ownership have been transferred to the buyer.

(iv) Dividend income is recognised when the right to receive payment is established.

(v) Interest income is recognised on a time proportion basis.

(vi) Rental income is recognised on a straight-line basis over the specifc tenure of the respective leases.
(vii) Club subscription fee is recognised on an accrual basis.

(u) Foreign currencies

(i) Functional currency
Functional currency is the currency of the primary economic environment in which an entity operates.

The fnancial statements of each entity within the Group are measured using their respective functional currencies.

(ii) Transactions and balances in foreign currencies

Transactions in currencies other than the functional currency (“foreign currencies”) are translated to the functional currency at the
rate of exchange ruling at the date of the transaction.

Monetary items denominated in foreign currencies at the reporting date are translated at foreign exchange rates ruling at that
date.
   110   111   112   113   114   115   116   117   118   119   120