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Notes to Financial Statements
December 31, 2014
PROVISIONS
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event,
it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the
amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying
amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third
party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the
amount of the receivable can be measured reliably.
REVENUE RECOGNITION
Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated
customer returns, discounts and other similar allowances.
Sale of goods
Revenue from the sale of goods is recognised when all the following conditions are satisfied:
• the Group has transferred to the buyer the significant risks and rewards of ownership of the goods;
• the Group retains neither continuing managerial involvement to the degree usually associated with ownership
nor effective control over the goods sold;
• the amount of revenue can be measured reliably;
• it is probable that the economic benefits associated with the transaction will flow to the entity; and
• the costs incurred or to be incurred in respect of the transaction can be measured reliably.
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.
Franchise fees
Revenue from franchise fees is recognised when all services or conditions relating to a transaction have been
substantially performed.
2. Summary of Significant Accounting Policies (cont’d)
