4.11 Provisions Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. Where the Group expects a provision to be reimbursed, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. 4.12 Revenue recognition Sales are recognized on the delivery of goods or on customer acceptance. Sales are shown net of sales taxes and discounts. Revenues from construction shall comprise the initial amount of revenue agreed in the contract and a claim collect from third parties are recognized on a percentage of completion basis. The percentage of completion is measured based on comparison of the completion of a physical proportion of the contract work at the end of the reporting period and the total contract work surveyed by the engineer project manager. In case, it is probable that the total construction costs will exceed the total construction income, the expected foreseeable loss is immediately recognized as an expense in profit or loss. The recognized revenue which is not yet due per the contracts has been presented under the caption of “Unbilled receivables” in the statement of financial position. The unrecognized revenue which is due per the contracts has been presented under the caption of “Advances received from employers and construction revenue received in advance - third parties” in the statement of financial position. Service income is recognized when services have been rendered. Rental income is recognized as income over the lease period. Interest income is recognized using the effective interest method. Other income is recognized on an accrual basis.
Gunkul Engineering Public Company Limited
GUNKUL_2012 GUNKUL ENGINEERING PCL Annual Report 2012