Annual Report - QuamIR

Notes to the Consolidated Financial Statements (Continued)
2 Summary of significant accounting policies (Continued)
2.28 Revenue recognition (Continued)
(ii) Rental income from investment properties is recognised on
a straight-line basis over the terms of the respective leases.
2
2.28
(ii)
(iii)
Revenue from individual construction contracts is
recognised under the percentage of completion method.
(iii)
(iv)
Sales of food and beverages are recognised in the income
statement at the point of sale to customer.
(iv)
(v)
Revenue from sales of properties is recognised when
the risks and rewards of the properties are passed to
the purchasers. Deposits and instalments received on
properties sold prior to the date of revenue recognition are
included under current liabilities.
(v)
(vi)
Revenue from provision of software development services is
recognised when the services are rendered.
(vi)
(vii)
Dividend income is recognised when the right to receive
payment is established.
(vii)
(viii)
Interest income is recognised on a time proportion basis
using the effective interest method.
(viii)
(ix)
Property management fee income is recognised when the
services are rendered.
(ix)
2.29 Leases
(a) Finance leases (leasee)
Leases that substantially transfer to the Group all the
risks and rewards of ownership of assets are classified
as finance leases. Finance leases are capitalised at the
lease’s commencement at the lower of the fair value of
the leased property and the present value of the minimum
lease payments. Each lease payment is allocated between
the liability and finance charges so as to achieve a
constant rate on the finance balance outstanding. The
corresponding rental obligations, net of finance charges,
are included in liabilities. The finance charges are charged
to the income statement over the lease periods so as
to produce a constant periodic rate of interest on the
remaining balance of the liability for each period.
2.29
(a)
•
107