Annual Report 2012 - Dialog

72 l Dialog Axiata PLC l Annual Report 2012
Notes to the Financial Statements
2 Summary of significant accounting policies contd.
2.23 Revenue recognition contd.
(a) Domestic and international service revenue and rental income
Revenue from telecommunications comprises amounts charged to customers in respect of monthly access charges,
call time usage, messaging, the provision of other telecommunications services, including data services and information
provision, fees for connecting users of other fixed lines and mobile networks to the the Company’s and Group’s network.
Revenue from Pay TV comprises amounts charged to customers in respect of monthly subscription revenue and connection
fees.
Access charges and airtime used by contract customers are invoiced and recorded as part of a periodic billing cycle and
recognised as revenue over the related access period, with unbilled revenue resulting from services already provided from
the billing cycle date to the end of each period accrued. The customers are charged Government taxes at the applicable
rates and the revenue is recognised net of such taxes.
Revenue from the sale of prepaid card on Mobile, CDMA, Broadband and Pay TV are deferred until such time the customer
uses the call time, downloadable quota, telecast time or when credit expires.
(b) Revenue from other network operators and international settlements
The revenue from other network operators, local and international, for the use of the Company’s and the Group’s
telecommunication network for completing call connections is recognised, net of taxes, based on traffic minutes/per second
rates stipulated in the relevant agreements and regulations.
(c) Connection fees
Connection fees are recognised as revenue over the subscriber churn period.
(d) Lease of passive infrastructure
Income from lease of passive infrastructure is recognised on an accrual basis based on prices agreed with customers upon
completion of service.
(e) Equipment revenue
Revenue from equipment sales is recognised when the equipment is delivered to the end customer and the sale is
considered complete. For equipment sales made to intermediaries, revenue is recognised if the significant risks associated
with the device are transferred to the intermediary and the intermediary has no legal right to return.
(f) Award credits
Award credits are separately identifiable component of the sales transaction in which they are granted. The fair value of
the consideration received or receivable in respect of the initial sale are allocated between the award credits and the other
components of the sale.
(g) Interest income
Interest income is recognised using the effective interest method. When a loan granted or a receivable is impaired, the
Company and the Group reduces the carrying amount to its recoverable amount, being the estimated future cash flow
discounted at the original effective interest rate of the instrument, and continues unwinding the discount as interest income.
Interest income on impaired loan and receivables are recognised using the original effective interest rate.