Annual Report - QuamIR

Notes to the Consolidated Financial Statements (Continued)
2 Summary of significant accounting policies (Continued)
2.27 Provisions (Continued)
Where there are a number of similar obligations, the likelihood
that an outflow will be required in settlement is determined by
considering the class of obligations as a whole. A provision is
recognised even if the likelihood of an outflow with respect to any
one item included in the same class of obligations may be small.
2
2.27
Provisions are measured at the present value of the expenditures
expected to be required to settle the obligation using a pre-tax
that reflects current market assessments of the time value of
money and the risks specific to the obligation. The increase in
the provision due to passage of time is recognised as interest
expense.
2.28 Revenue recognition
Revenue comprises the fair value of the consideration received
or receivable for the sale of goods, properties and services in the
ordinary course of the Group’s activities. Revenue is shown net
of business tax and after eliminating sales within the Group.
2.28
The Group recognises revenue when the amount of revenue can
be reliably measured, it is probable that future economic benefits
will flow to the entity and specific criteria have been met for
each of the Group’s activities as described below. The amount
of revenue is not considered to be reliably measurable until all
contingencies relating to the sale have been resolved. The Group
bases its estimates on historical results, taking into consideration
the type of customer, the type of transaction and the specifics of
each arrangement.
(i)
Revenues from infrastructure and alternative energy are
generated from water supply, electricity supply and the toll
road. They are recognised based on the following:
(i)
(a)
Revenue arising from water supply is recognised
based on water supplied as recorded by meters
read during the year.
(a)
(b)
Revenue arising from electricity supply is recognised
when electricity is supplied to the provincial grid
(b)
companies.
(c)
Revenue arising from toll road is recognised when
services are rendered.
(c)
106 HKC (Holdings) Limited • Annual Report 2011