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STAMFORD LAND CORPORATION LTD
Notes to the Financial Statements
2 Summary of Significant Accounting Policies (cont’d)
Basis of Revenue Recognition
Income from the sale of goods is recognised when signifcant risks and rewards of ownership
are transferred to the buyer and the amount of revenue and the costs of the transaction can be
measured reliably.
Income from the sale of completed residential properties is recognised using the settlement
approach when the signifcant risks and rewards have been transferred to the buyer.
Income from the rendering of services associated with the hotel and restaurant operations is
recognised when the services are rendered.
Rental income is recognised on a time-proportion basis in accordance with the terms of the rental
agreement from investment property.
Dividend income from subsidiaries and other equity securities are recognised in the accounting
period in which the dividend is declared payable.
Interest income on interest-bearing instruments is recognised on the time-proportion basis, using
the effective interest method.
Employee Benefts
Certain subsidiaries operate a defned contribution provident plan, in which employees are
entitled to join upon fulflling certain conditions. The assets of the fund are held separately from
those of the entity in an independently administered fund. The entity contributes an amount equal
to a fxed percentage of the salary of each participating employee. Contributions are charged
to the income statement in the period to which they relate. For employee leave entitlement,
the expected cost of short-term employee benefts in the form of compensated absences is
recognised when the employees render service that increases their entitlement to compensated
absences. A liability for bonuses is recognised where the entity is contractually obliged or where
there is constructive obligation based on past practice.