Nextmedia ar cover 21june op.co

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4. SIGNIFICANT ACCOUNTING POLICIES (continued)
Revenue recognition
Revenue is measured at the fair value of the consideration received and receivables.
(i) Sales of magazines and newspapers are recognised on the date of delivery, net of allowances for of unsold copies which may be returned.
(ii) Sales of books and other publications are recognised on the date of delivery to customers.
(iii) Books, magazines and newspapers advertising income is recognised upon the publication of the edition in which the advertisement is placed.
(iv) Revenue from the provision of printing, reprographic and internet content services is recognised upon the provision of the services.
(v) Internet advertising income is recognised on a straight-line basis over the period during which the advertisement is displayed.
(vi) Sales of waste materials are recognised on the date of delivery of the waste materials.
(vii) Interest income from a fi nancial asset is accrued on a time basis, by reference to the principal outstanding and at the effective interest rates applicable, which is the rate
that exactly discounts the estimated future cash receipts through the expected life of the fi nancial asset to that asset’s net carrying amount.
(viii) Rental income is recognised on a straight line basis over the term of the lease.
(ix) Internet subscription income and internet content provision income are recognised upon the provision of the services.
Masthead and publishing rights
On initial recognition, intangible assets acquired separately and from business combinations are recognised at cost and at fair value respectively. After initial recognition,
masthead and publishing rights of the Group’s newspaper and magazines with indefi nite useful lives are carried at cost less any subsequent accumulated impairment losses
(see the accounting policy in respect of impairment losses below).
Gains or losses arising from derecognition of an intangible asset are measured at the difference between the net disposal proceeds and the carrying amount of the asset
and are recognised in the consolidated income statement when the asset is derecognised.
Intangible assets with indefi nite useful lives are tested for impairment annually by comparing their carrying amounts with their recoverable amounts, irrespective of whether
there is any indication that they may be impaired. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset
is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately.