年報 - HKExnews

NOTES TO THE FINANCIAL STATEMENTS
31 March 2010
2.4 SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (continued)
Cash and cash equivalents
For the purpose of the consolidated statement of cash
flows, cash and cash equivalents comprise cash and
bank balances and time deposits, and short term highly
liquid investments that are readily convertible into known
amounts of cash, are subject to an insignificant risk of
changes in value, and have a short maturity of generally
within three months when acquired, less bank overdrafts
which are repayable on demand and form an integral part
of the Group’s cash management.
For the purpose of the statement of financial position,
cash and cash equivalents comprise cash and bank
balances, time deposits, and short term highly liquid
investments which are not restricted as to use.
Revenue recognition
Revenue is recognised when it is probable that the
economic benefits will flow to the Group and when the
revenue can be measured reliably, on the following bases:
(a)
(b)
(c)
(d)
(e)
from the sale of goods, when the significant risks
and rewards of ownership have been transferred
to the buyer, provided that the Group maintains
neither managerial involvement to the degree usually
associated with ownership, nor effective control over
the goods sold;
from the rendering of services, when the services
have been provided;
rental income, on a time proportion basis over the
lease terms;
franchise and royalty income, on a time proportion
basis, over the franchise periods; and
interest income, on an accrual basis using the
effective interest rate method by applying the rate
that discounts the estimated future cash receipts
through the expected life of the financial instrument
to the net carrying amount of the financial asset.
2.4
(a)
(b)
(c)
(d)
(e)
TEXWINCA HOLDINGS LIMITED ANNUAL REPORT 2010
67