for the year ended 31 December 2016
NOTES TO THE
FINANCIAL STATEMENTS
Baker Technology Limited
-
99
-
2.
Summaryofsignificantaccountingpolicies (cont’d)
2.17
Construction contracts and revenue (cont’d)
(b)
Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the
Group and the revenue can be reliablymeasured, regardless of when the payment is made. Revenue
ismeasured at the fair value of consideration receivedor receivable, taking into account contractually
defined terms of payment and excluding taxes or duty. TheGroup assesses its revenue arrangements
to determine if it is acting as principal or agent. The following specific recognition criteriamust also
bemet before revenue is recognised:
(i)
Sales of goods
Revenue from sales of goods is recognisedupon the transfer of significant risk and rewards of
ownership of the goods to the customers, 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.
(ii)
Rendering of services
Revenue from renderingof services is recognisedby reference to the stageof completionat the
end of the reporting period.Where the contract outcome cannot bemeasured reliably, revenue
is recognised to the extent of the expenses recognised that are recoverable.
(iii)
Interest income
Interest income is recognised using the effective interestmethod.
(iv)
Dividend income
Dividend income is recognisedwhen theGroup’s right to receive payment is established.
