Page 76

Notes to Consolidated Financial Statements - 31 are met. Excess of collections over the recognized receivables are included in the “Trade and other payables” account in the consolidated balance sheet, if expected to be applied within 12 months from the balance sheet date. Otherwise, these are classified as noncurrent liability under “Other noncurrent liabilities” account in the consolidated balance sheet. For sale of condominium units and preferred shares under a single contract to sell, the selling price is allocated to each component using the residual method. Collections received are initially applied to the selling price of the preferred share and the remainder to the selling price of the condominium unit. Revenue on the sale of parking lots is recognized using the full accrual method. Cost of real estate sales is recognized consistent with the revenue recognition method applied. Cost of condominium units sold before the completion of the project is determined based on actual costs and project estimates of building contractors and technical staff. Contract costs include all direct materials and labor costs and those direct costs related to contract performance. Expected losses on contracts are recognized immediately when it is probable that the total contract costs will exceed total contract revenue. Changes in contract performance, contract conditions and estimated profitability, including those arising from contract penalty provisions, and final contract settlements which may result in revisions to estimated costs and gross margins are recognized in the year in which the changes are determined. Rent. Rent income from operating leases less the Group’s initial direct costs of entering into the leases, is recognized on a straight-line basis over the term of the lease; except for contingent rent income which is recognized when it arises. This also includes common utilities, services and maintenance charges, as well as other incidental income in providing the service. Revenue is recognized when services are rendered. The Group accounts for any cash received from customers for advance rent payments as stated in the lease contract. This advance rent payments are applied as payment to rents of the last months prior to the expiration of the contract. This is classified as “Unearned income” under “Trade and other payables” and “Other noncurrent liabilities” accounts in the consolidated balance sheet for current and noncurrent portion, respectively. Gain on Sale of AFS Investments. Revenue is recognized upon transfer of risks and rewards to the buyer. Interest Income. Interest income comprises interest from bank deposits and from accretion of trade receivables (using the effective interest, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset). Revenue is recognized as it accrues using EIR method. Other Revenue. This includes revenue from restaurant operations. Revenue is recognized when services are rendered.

76

Profile for Alphaland Corporate Communications

Alphaland Annual Report 2013  

Alphaland Annual Report 2013  

Profile for alphaland
Advertisement