2012 Annual Report - Media Prima Berhad

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BORROWINGS (CONTINUED)
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the
liability for at least 12 months after the financial position date.
Borrowing costs incurred to finance the construction of property, plant and equipment are capitalised as part of the
cost of the asset during the period of time that is required to complete and prepare the asset for its intended use.
All other borrowing costs are expensed.
Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it
is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down
occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the
fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it
relates.
INCOME RECOGNITION
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services in
the ordinary course of the Group’s activities. Revenue is shown net of estimated returns, discounts, commissions,
rebates and taxes and after eliminating sales within the Group.
The Group recognises revenue when the amount of revenue can be reliably measured, it is probable that future
economic benefits will flow to the entity and specific criteria have been met for each of the Group’s activities. The
amount of revenue is not considered to be reliably measurable until all contingencies relating to the sale have been
resolved. The Group bases its estimates on historical results, taking into consideration the type of customer, the type
of transaction and the specifics of each arrangement.
Dividend income is recognised when the right to receive payment is established.
Revenue of the Company from the provision of procurement services to subsidiaries is recognised on an accrual
basis.
Revenue of the subsidiaries is recognised upon the delivery of products and customer acceptance or performance
of services, or upon telecast or publishing of advertisements, net of discounts, returns, sales commissions and sales
rebates, if any. Revenue from display rental income, advertisement production works and events are recognised in
accordance with the terms of the sales contract which is principally over the period of the contract, on an accrual
basis. Accordingly, all amounts received in advance are disclosed in the financial statements as deferred income.
Interest income of the Group and Company is recognised on an accrual basis based on the prevailing interest rates
for deposits at financial institutions.
Rental income is recognised on an accrual basis.
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annual
report
2012
From Our Perspective Who We Are Our Strategy & Achievements Our Performance Our Responsibility Our Leadership Corporate Governance The Financials Additional Information