Page 126 - S P Setia Annual Report 2016

 

 

 

 

 

Page 126 - S P Setia Annual Report 2016
P. 126

124   S P Setia Berhad Group
                Annual Report 2016




          Notes To The Financial Statements

          For The Financial Year Ended 31 December 2016

          1.   SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)
              (s)   Income recognition (cont’d.)


                   (i)   Sale of development properties and construction contracts

                       Revenue from sale of development properties and construction contracts 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 as described in Notes 1(l) and 1(m) respectively.

                       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 financial year.

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

                   (ii)   Sale of completed development properties

                       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)   Sale of goods

                       Revenue from the sale of goods 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.

                   (iv)   Dividend income

                       Dividend income is recognised when the Group’s and the Company’s right to receive payment is established.

                   (v)   Interest income

                       Interest income is recognised on a time proportion basis.

                   (vi)   Rental income

                       Rental income is accounted for on a straight-line basis over the lease terms. The aggregate costs of incentives provided to
                       lessees are recognised as a reduction of rental income over the lease term on a straight-line basis.

                   (vii)  Subscription fees

                       Club subscription fees are recognised on an accrual basis.

                   (viii)  Management fees

                       Management fees are recognised when services are rendered.

              (t)   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.
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