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SUNNINGDALE TECH LTD
ANNUAL REPORT 2014
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
NOTES TO THE FINANCIAL STATEMENTS
2.
Summary of significant accounting policies (cont’d)
2.24
Revenue recognition (cont’d)
(b)
Revenue from mould fabrication work
Revenue from mould fabrication work is recognised on the percentage of completion method, measured by reference
to the stages of mould manufacturing processes surveyed by project engineers. Losses are provided for as they
become known. Where the outcome cannot be measured reliably, revenue is recognised to the extent of the expenses
recognised that are recoverable.
(c)
Interest income
Interest income is recognised using the effective interest method.
(d)
Dividends
Dividend income is recognised when the Group’s right to receive payment is established.
(e)
Rental income
Rental income is accounted for on a straight-line basis over the lease terms. The aggregate costs of incentives provided
to lessees are recognised as a reduction of rental income over the lease term on a straight-line basis.
2.25
Taxes
(a)
Current income tax
Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be
recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those
that are enacted or substantively enacted at the end of the reporting period, in the countries where the Group operates
and generates taxable income.
Current income taxes are recognised in profit or loss except to the extent that the tax relates to items recognised outside
profit or loss, either in other comprehensive income or directly in equity. Management periodically evaluates positions
taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and
establishes provisions where appropriate.
(b)
Deferred tax
Deferred tax is provided using the liability method on temporary differences at end of the reporting period between the
tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred tax liabilities are recognised for all temporary differences, except:
–
Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither the accounting
profit nor taxable profit or loss; and
–
In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests
in joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is
probable that the temporary differences will not reverse in the foreseeable future.
