Baker Technology LimitedAnnual Report 2014
97
2.
Summaryof significant accountingpolicies (cont’d)
2.19
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 reliably measured, regardless of when the payment is made.
Revenue ismeasured at the fair value of consideration received or receivable, taking into account
contractuallydefined termsofpaymentandexcluding taxesorduty.TheGroupassesses its revenue
arrangements to determine if it is acting as principal or agent. The following specific recognition
criteriamust alsobemet before revenue is recognised:
(i)
Sales of goods
Revenue from salesofgoods is recognisedupon the transferof significant riskand rewards
of ownershipof thegoods to the customers, usuallyondeliveryof goods.
Revenue isnot recognised to theextentwhere therearesignificantuncertainties regarding
recoveryof the considerationdue, associated costsor thepossible returnof goods.
(ii)
Renderingof services
Revenue from renderingofservices is recognisedby reference to thestageofcompletionat
theendof the reportingperiod.Where thecontractoutcomecannotbemeasured reliably,
revenue is recognised to theextent of theexpenses recognised that are recoverable.
(iii)
Interest income
Interest income is recognisedusing theeffective interestmethod.
(iv)
Dividend income
Dividend income is recognisedwhen theGroup’s right to receivepayment isestablished.
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31December 2014
