For the financial year ended 31 December 2015
58
HAW PAR CORPORATION LIMITED
2. SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
(a) Basis of preparation
(continued)
New accounting standards and FRS interpretations and amendments
Below are the mandatory standards, amendments and interpretations to existing standards that have been
published, and are relevant for the Group’s accounting periods beginning on or after 1 January 2016 and which
the Group has not early adopted:
Effective for annual periods beginning on or after 1 January 2016
• Amendments to FRS 16 Property plant and equipment and FRS 38 Intangible assets
• Amendments to FRS 1 Presentation of financial statements
These amendments to FRS are not expected to have any significant impact on the financial statements of the Group.
Effective for annual periods beginning on or after 1 January 2018
• FRS 115 Revenue from contracts with customers
• FRS 109 Financial instruments
The Group is still assessing the impact on the adoption of the above FRS on 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) 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.
NOT E S TO T H E F I NAN C I A L S TAT EME N T S
(CONTINUED)
