Pg 147 - Berjaya Corporation Berhad

notes to thefinancial statements30 April 20062 SIGNIFICANT ACCOUNTING POLICIES (CONT’D)(q) Revenue Recognition(i)Investment IncomeDividend income from investments in subsidiary and associated companies is recognised when the rights to receive thedividend payment are established. Dividend income from other investments is recognised on a receipt basis.Interest income from short term deposits, irredeemable convertible unsecured loan stocks and advances are recognisedon an accrual basis.(ii)Development PropertiesRevenue from sale of development properties is accounted for by the stage of completion method in respect of all buildingunits that have been sold.(iii) Enrolment Fees60% of the enrolment fees from members joining the vacation club are recognised as income upon signing of the membershipagreements and the remaining 40% is treated as deferred membership fees which are recognised over the membershipperiod.Enrolment fees from members joining the golf and other clubs are recognised as income upon signing of the membershipagreements.(iv) Rental IncomeRental income, including those from investment properties and hotel operations, is recognised, on the accrual basis unlessrecoverability is in doubt, in which case, it is recognised on a receipt basis.(v) Revenue from Water Theme Park OperationsEntrance fee to the water theme park is recognised when tickets are sold. Revenue from the sale of food and beverage isrecognised based on invoiced value of goods sold.(vi) Revenue from Casino OperationsRevenue is recognised on a receipt basis and is stated net of gaming tax.(vii) Sale of Goods, Property Inventories and ServicesRevenue is recognised when significant risks and rewards of ownership of the goods and property inventories have beenpassed to the buyer. Revenue from services rendered is recognised upon its completion. Revenue is recognised net ofservice tax and discount,where applicable.(viii) Management Fee and Share Administration Fee IncomeManagement fee and share administration fee income are recognised on an accrual basis.56Annual Report 2006Berjaya Land Berhad (201765-A)