Asiaone 1-42

3. Significant accounting policies (cont’d)
(i) Associates
FINANCIAL STATEMENTS
These are companies (not being subsidiaries) in which the Group has a substantial interest
of not less than 20% of the equity and in whose financial and operating policy decisions
the Group exercises significant influence.
The Group’s share of the results of associates is included in the consolidated profit and
loss accounts. The Group’s share of the post-acquisition retained profits and reserves or
accumulated losses of associates is added to or deducted from the cost of these investments
in the consolidated balance sheet.
In the Company’s balance sheet, investments in associates are stated at cost and provision
is made for diminution in value which is other than temporary.
(j) Investments
Long-term investments are stated at cost. Where cost of these investments exceeds market
value, provision is made for diminution in value which is other than temporary on an individual
basis.
Profit or loss on sale of investments is recognised on completion of sale.
(k) Debtors
Bad debts are written off and specific provision is made for those debts considered to be
doubtful. In addition, a general provision is made on the balance of trade debtors to cover
any unexpected losses which have not been specifically identified.
(l) Foreign currencies
Monetary assets and liabilities expressed in foreign currencies are converted to Singapore
dollars at the rates of exchange closely approximating to those ruling at the balance sheet
date. Transactions during the year are converted to Singapore dollars at rates of exchange
ruling on the transaction dates. Differences in exchange are included in the profit and loss
accounts.
(m) Revenue recognition
Revenue is recognised on an accrual basis when it is probable that the economic benefits
will flow to the Company and when the revenue can be measured reliably, provided that no
significant Company obligations remain, on the following bases:
(i) Content service fees are derived from services for providing customers with content
and information. Content services are recognised when services are provided;
(ii) Advertising service fees are derived from the sale of banner advertisements and
sponsorships pursuant to which the Company delivers advertising for a fee on the
Company’s websites. Revenue from advertising is recognised on an accrual basis in
the period in which the advertisement is displayed or over the straight-line basis over
the term of the contract; and
(iii) Audiotex service fees are derived for providing information via “1900” and “1800”
telephone services. Audiotex service fees are recognised when services are rendered.
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