FORGING AHEAD - Tradewinds Plantation Berhad

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FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2010
4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.19 Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable net of discounts and rebates.
Revenue is recognised to the extent that it is probable that the economic benefits associated with the transaction will
flow to the Group, and the amount of revenue and the cost incurred or to be incurred in respect of the transaction can
be reliably measured and specific recognition criteria have been met for each of the Group’s activities as follows:
(a) Sale of goods
Revenue from sale of goods is recognised when the significant risks and rewards of ownership of the goods have
been transferred to the customer and where the Group retains no continuing managerial involvement over the
goods, which coincides with delivery of goods and acceptance by customers.
(b) Property development
Property development revenue is recognised in respect of all development units that have been sold. Revenue
recognition commences when the sale of the development unit is effected, upon the commencement of development
and construction activities and when the financial outcome can be reliably estimated. The attributable portion of
property development cost is recognised as an expense in the period in which the related revenue is recognised.
The amount of such revenue and expenses recognised is determined by reference to the percentage of completion
of development activity at the end of the reporting period. The percentage of completion is measured by reference
to the cost incurred to date compared to the total estimated cost of development.
When the financial outcome of a development activity cannot be reliably estimated, the property development
revenue is recognised only to the extent of property development costs incurred that is probable to be recoverable
and the property development costs on the development units sold are recognised as an expense in the period in
which they are incurred.
Any expected loss on a development project is recognised as an expense immediately, including costs to be
incurred over the defects liability period.
(c) Services
Revenue from rendering of management services is recognised in profit or loss upon performance of services.
(d) Dividend income
Dividend income is recognised when the right to receive payment is established.
(e) Finance income
Finance income is recognised as it accrues, using the effective interest method.
(f) Rental income
Rental income is recognised on a straight-line basis over the term of an ongoing lease.
TRADEWINDS PLANTATION BERHAD
Annual Report 2010