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130 | S P SETIA BERHAD GROUP | Annual Report 2014

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 October 2014

V. FINANCIAL STATEMENTS

1. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

(t) Income recognition (cont’d)

(ii) Revenue from the sale of completed development properties is measured at the fair value of the consideration receivable and is

recognised in profit or loss when the significant risks and rewards of ownership have been transferred to the buyer.

(iii) Revenue fromthe sale of goods ismeasured at the fair value of the consideration receivable and is recognised in profit or losswhen

the significant 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 specific tenure of the respective leases.

(vii) Club subscription fee is recognised on an accrual basis.

(viii) Management fee is recognised on an accrual basis, net of service taxes.

(u) Foreign currencies

(i) Functional currency

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

The financial 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.

Non-monetary items which are measured in terms of historical costs denominated in foreign currencies are translated at

foreign exchange rates ruling at the date of the transaction.

Non-monetary items which are measured at fair values denominated in foreign currencies are translated at the foreign exchange

rates ruling at the date when the fair values were determined.

Exchange differences arising on the settlement of monetary items and the translation of monetary items are included in profit

or loss for the period.

When a gain or loss on a non-monetary item is recognised directly in equity, any corresponding exchange gain or loss is

recognised directly in equity. When a gain or loss on a non-monetary item is recognised in profit or loss, any corresponding

exchange gain or loss is recognised in profit or loss.