HAW PAR CORPORATION LIMITED
58
NOTES TO THE FINANCIAL STATEMENTS
(CONTINUED)
For the financial year ended 31 December 2014
2.
SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
(a)
Basis of preparation
(continued)
The adoption of these new or amended FRS and INT FRS did not result in substantial changes to the accounting
policies of the Group and the Company and had no material effect on the amounts reported for the current
or prior financial years except for the following:
FRS 112 Disclosures of Interests in Other Entities
The Group has adopted the above new FRS on 1 January 2014. The amendment is applicable for the annual
period beginning on or after 1 January 2014. It sets out the required disclosures for entities reporting under
the new FRS 110 Consolidated Financial Statements and FRS 111 Joint Arrangements, and replaces the
disclosure requirements currently found in FRS 27 (revised 2011) Separate Financial Statements and FRS
28 (revised 2011) Investments in Associates and Joint Ventures.
The adoption of FRS 112 does not have any material impact on the accounting policies of the Group. The
Group has applied FRS 112 retrospectively and has incorporated the additional required disclosures into the
financial statements.
(b)
Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and
rendering of services, in the ordinary course of the Group’s activities, net of goods and services tax, rebates
and discounts, and after eliminating sales within the Group. Revenue is recognised as follows:
(1)
Sale of goods
Revenue from sale of goods is recognised when a Group entity has transferred to the customer the
significant risks and rewards of the ownership of the goods, and collectibility of the related receivables
is reasonably assured.
(2)
Rendering of services
Revenue from services is recognised upon rendering of services.
(3)
Interest income
Interest income is recognised on a time proportion basis using the effective interest method.
(4)
Dividend income
Dividend income from subsidiaries, associated companies and available-for-sale financial assets is
recognised when the right to receive payment is established.
(5)
Rental income
Rental income from operating leases on investment properties is recognised on a straight-line basis
over the lease term when collectability of the related receivable is reasonably assured.
