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(j) REVENUE RECOGNITION
Revenue from the sale of goods and services is recognised when the goods and services are delivered.
Revenue from property development and other long term contracts is recognised on the percentage of
completion method by reference to the percentage of actual construction work completed. Rental income
represents the invoiced value derived from the letting of properties, while finance charges from hire
purchase activities are recognised over the period of the hire purchase contracts in proportion to net
funds invested. Revenue from rental of hotel rooms, sale of food and beverage and other related income
are recognised on an accrual basis. Tuition fees are recognised on an accrual basis whereas nonrefundable
registration and enrolment fees are recognised when chargeable.
Dividends from Subsidiaries, Associates and other investee companies are recognised in the income
statements when the right to receive payment is established.
Interest income is recognised as it accrues unless collection is doubtful. Sales and other revenue earned
from intra-group companies are eliminated on consolidation, and the revenue of Associates is excluded
from Group revenue.
(k) INCOME TAX
Income tax on the profit or loss for the year comprises current and deferred tax, and is recognised in
the income statement except to the extent that it relates to items recognised directly in equity, in which
case it is recognised in equity.
Current tax is the expected amount of income taxes payable in respect of the taxable profit for the year
and is measured using the tax rates that have been enacted or substantively enacted at the balance
sheet date.
Deferred tax is provided for using the liability method, on temporary differences at the balance sheet date
between the tax bases of assets and liabilities and their carrying amounts in the financial statements. In
principle, deferred tax liabilities are recognised for all taxable temporary differences and deferred tax
assets are recognised for all deductible temporary differences, unused tax losses and unused tax credits
to the extent that it is probable that taxable profit will be available against which the deductible temporary
differences, unused tax losses and unused tax credits can be utilised.
Deferred tax is measured at the tax rates that are expected to apply in the period when the asset is
realised or the liability is settled, based on tax rates that have been enacted or substantively enacted at
the balance sheet date.
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