Annual Report 1999 - Parkway Pantai

Notes to the Financial Statementsfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries492. Summary of Significant Accounting Policies (cont’d)2.10 Income Recognition(a)(b)(c)Profits from the sale of development properties are recognised when the units aresold and upon the granting of the Temporary Occupation Permit and to the extentof progress billings made. The amount of the progress billings and the correspondingcosts are then taken to the profit and loss account. Provision is made for anticipatedlosses if and when they can be determined.Dividend income from subsidiary and associated companies are recognised as soonas such dividends are proposed and declared by these companies.Dividend income from other investments are recognised on receipt of such dividend.2.11 Provision for Doubtful DebtsSpecific provision is made for accounts which are doubtful of collection. A general provisioncalculated as a percentage of overdue debts is also made.2.12 Deferred TaxationDeferred taxation is provided, using the liability method, on timing differences otherthan those which can be demonstrated with reasonable probability to continue into thefuture. A deferred tax benefit is, however, not recognised in the financial statementsexcept when there is a reasonable expectation of realisation.2.13 Currency Translation(a)(b)Monetary assets and liabilities in foreign currencies are translated into reportingcurrencies at rates of exchange closely approximate to those ruling at the balancesheet date. Transactions in foreign currencies during the year are translated at ratesprevailing on transaction dates. Translation differences are included in the profitand loss account.The financial statements of foreign subsidiaries and associated companies aretranslated into Singapore dollars at rates of exchange closely approximate to thoseruling at the balance sheet date. Translation differences are dealt with throughExchange Fluctuation Reserves.2.14 Deferred ExpenditureDeferred expenditure comprises expenses incurred in the recruitment and training ofnurses and management fees for arrangement of banking facilities.The expenses incurred in the recruitment and training of nurses are written off over theperiod of the service agreements of the respective nurses ranging from 3 to 5 years.Management fees for arrangement of banking facilities are written off over the period ofthe facilities.