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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
Dividend income
Dividend income from investments is recognised when the shareholders’ rights to receive payment have been established.
Interest income
Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate
applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the
financial asset to that asset’s net carrying amount.
Rental income
Rental income is recognised on a straight-line basis over the term of the relevant lease as set out in the
paragraph “Leases”.
Advertising, promotion, concessionary, commission and other service income
Advertising, promotion, concessionary, commission and other service income are recognised when the services
are rendered.
PATRONAGE REBATES
- Patronage rebates distributed to the members of the Co-operative/NTUC Union cardholders
(“members”) are recognised as a liability in the Co-operative’s and the Group’s financial statements in the period in which
the patronage rebates are approved by the members at the annual general meeting. Patronage rebates which are not
claimed within 3 years from the date of payment by members are written back in accordance with By-Law 13.4.2 and
the rules of NTUC Union Card Scheme.
BORROWING COSTS
- Borrowing costs directly attributable to the acquisition, construction or production of qualifying
assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are
added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
NOTES TO FINANCIAL STATEMENTS
March 31, 2013
