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financiAL STATEMENTs
Annual Report 2017
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NOTES TO THE FINANCIAL STATEMENTS
2.
SIGNIFICANT ACCOUNTING POLICIES (Cont’d.)
2.3 Summary of Significant Accounting Policies (Cont’d.)
(o) Provision for Liabilities
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event,
it is probable that an outflow of resources embodying economic benefits will be required to settle the obligations and
the amount of the obligation can be estimated reliably.
Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. If it is no longer
probable that an outflow of economic resources will be required to settle the obligation, the provision is reversed. If
the effect of the time value of money is material, provisions are discounted using a current pre tax rate that reflects,
where appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.
(p) Share Capital
An equity instrument is any contract that evidences a residual interest in the assets of the Group and the Company
after deducting all of its liabilities. Ordinary shares are equity instruments.
Ordinary shares are recorded at the proceeds received, net of directly attributable incremental transaction costs.
Ordinary shares are classified as equity. Dividends on ordinary shares are recognised in equity in the period in which
they are declared.
(q) Revenue Recognition
Revenue is recognised when it is probable that economic benefits associated with the transaction will flow to the
Group and the amount of revenue can be measured reliably. Specific income streams are recognised as follows:
(i)
Sale of goods
Revenue relating to sale of goods is recognised net of sales taxes and discounts, and upon transfer of significant
risks and rewards of ownership to the buyer.
(ii) Rental income
Rental income from investment property is recognised on a straight-line basis over the term of the lease.
(iii) Property management services
Revenue from property management is recognised when services are rendered.
(iv) Dividend income
Dividend income is recognised when the right to receive payment is established.
(v) Receipts in advance
Receipts in advance are deferred and classified under current liabilities in the statement of financial position.