66
STAMFORD LAND CORPORATION LTD
Notes to Financial Statements
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(iii)
Revenue
Revenue represents invoiced value of goods sold and services rendered, hotel and restaurant
operations revenue, rental income and income from the sale of completed residential properties. The
Group’s revenue excludes transactions within the Group. Revenue is measured at the fair value of
the consideration received or receivable, taking into account the amount of any trade discounts and
volume rebates allowed by the Group.
Revenue from sale of goods and services
Income from the sale of goods and completed properties is recognised when significant 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. This generally coincides with the point in time when the
completed property is delivered to the buyer. No revenue is recognised when there is significant
uncertainty as to the collectibility of consideration due or the possible return of units sold.
Income from the rendering of services associated with the hotel and restaurant operations is
recognised when the services are rendered.
Rental income
Rental income from investment properties is recognised in profit or loss on a straight-line basis over
the term of the lease. Lease incentives granted are recognised as an integral part of the total rental
income over the term of the lease.
Dividend income
Dividend income is recognised when the right to receive payment is established.
Interest income
Interest income on interest-bearing instruments is recognised on a time-proportion basis using the
effective interest method.
