Notes to the Financial Statements - Cahaya Mata Sarawak Bhd
Notes to the Financial Statements - Cahaya Mata Sarawak Bhd
Notes to the Financial Statements - Cahaya Mata Sarawak Bhd
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98<br />
<strong>Notes</strong> <strong>to</strong> <strong>the</strong> <strong>Financial</strong> <strong>Statements</strong><br />
For <strong>the</strong> fi nancial year ended 31 December 2011<br />
2. Summary of signifi cant accounting policies (contd.)<br />
2.26 Revenue (contd.)<br />
(e) Road maintenance contracts<br />
For road maintenance contracts, revenue for routine maintenance fees are based on fi xed rate<br />
and is recognised upon performance of work in accordance <strong>to</strong> <strong>the</strong> terms as stipulated in <strong>the</strong> road<br />
maintenance agreements. Revenue from work orders fees outside <strong>the</strong> scope of <strong>the</strong> road maintenance<br />
agreements are based on schedule of rates approved by client.<br />
(f) Dividend income<br />
Dividend income is recognised when <strong>the</strong> Group’s right <strong>to</strong> receive payment is established.<br />
(g) Interest income<br />
Interest income is recognised on an accrual basis using <strong>the</strong> effective interest method.<br />
(h) Rental income<br />
Rental income is accounted for on a straight-line basis over <strong>the</strong> lease terms. The aggregate costs of<br />
incentives provided <strong>to</strong> lessees are recognised as a reduction of rental income over <strong>the</strong> lease term on<br />
a straight-line basis.<br />
(i) Supervision and management fees<br />
Supervision and management fees are recognised when services are rendered.<br />
(j) Camp management and food catering fees<br />
2.27 Income taxes<br />
Camp management and food catering fees are recognised progressively in accordance with <strong>the</strong><br />
terms of <strong>the</strong> agreements.<br />
(a) Current tax<br />
Current tax assets and liabilities are measured at <strong>the</strong> amount expected <strong>to</strong> be recovered from or paid<br />
<strong>to</strong> <strong>the</strong> taxation authorities. The tax rates and tax laws used <strong>to</strong> compute <strong>the</strong> amount are those that are<br />
enacted or substantively enacted by <strong>the</strong> reporting date.<br />
Current taxes are recognised in profi t or loss except <strong>to</strong> <strong>the</strong> extent that <strong>the</strong> tax relates <strong>to</strong> items<br />
recognised outside profi t or loss, ei<strong>the</strong>r in o<strong>the</strong>r comprehensive income or directly in equity.<br />
(b) Deferred tax<br />
Deferred tax is provided using <strong>the</strong> liability method on temporary differences at <strong>the</strong> reporting date<br />
between <strong>the</strong> tax bases of assets and liabilities and <strong>the</strong>ir carrying amounts for fi nancial reporting<br />
purposes.<br />
Cahya <strong>Mata</strong> <strong>Sarawak</strong> Berhad