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HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2014
NOTES TO THE
FINANCIAL STATEMENTS
for the financial year ended 31 December 2014
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.21 Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the
Group and the revenue can be reliably measured, regardless of when the payment is made. Revenue
is measured at the fair value of consideration received or receivable, taking into account contractually
defined terms of payment and excluding taxes or duty.
Revenue from engineering services is recognised when services are rendered.
Revenue from sale of goods is recognised upon the transfer of significant risk and rewards of
ownership of the goods to the customer, usually on delivery of goods. Revenue is not recognised
to the extent where there are significant uncertainties regarding recovery of the consideration due,
associated costs or the possible return of goods.
Rental income under operating leases is recognised in profit or loss on a straight-line basis over the
term of the lease.
Dividend income is recognised in profit or loss when the Group’s right to receive payment is
established.
2.22 Taxes
(a)
Current income tax
Current income tax assets and liabilities for the current and prior periods are measured at the
amount expected to be recovered from or paid to the taxation authorities. The tax rates and
tax laws used to compute the amount are those that are enacted or substantively enacted
at the end of the reporting period, in the countries where the Group operates and generates
taxable income.
Current income taxes are recognised in profit or loss except to the extent that the tax relates
to items recognised outside profit or loss, either in other comprehensive income or directly
in equity. Management periodically evaluates positions taken in the tax returns with respect
to situations in which applicable tax regulations are subject to interpretation and establishes
provisions where appropriate.
