. 9 8
NOTESTOTHE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017
BAKER
TECHNOLOGY
L IMI TED
THE BE ST
I N US
2.
SUMMARYOF SIGNIFICANTACCOUNTINGPOLICIES (CONT’D)
2.17
Constructioncontractsand revenue (cont’d)
(b)
Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the
Groupand the revenuecanbe reliablymeasured, regardlessofwhen thepayment ismade. Revenue
ismeasuredat the fairvalueofconsideration receivedor receivable, taking intoaccountcontractually
defined termsof payment andexcluding taxesorduty. TheGroupassesses its revenuearrangements
todetermine if it is acting as principal or agent. The following specific recognition criteriamust also
bemet before revenue is recognised:
(i)
Salesof goods
Revenue from salesof goods is recognisedupon the transferof significant riskand rewardsof
ownershipof thegoods to thecustomers, usuallyondeliveryof goods.
Revenue is not recognised to the extent where there are significant uncertainties regarding
recoveryof theconsiderationdue, associatedcosts or thepossible returnof goods.
(ii)
Renderingof services
Revenue from renderingof services is recognisedby reference to the stageof completion at
the end of the reporting period. Where the contract outcome cannot bemeasured 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 is established.
2.18
Taxes
(a)
Current income tax
Current income taxassetsand liabilities for thecurrent andpriorperiodsaremeasuredat theamount
expected tobe recovered fromor paid to the taxation authorities. The tax rates and tax laws used to
compute theamount are those that areenactedor substantivelyenactedat theendof the reporting
period, in thecountrieswhere theGroupoperates andgenerates taxable income.
Current income taxes are recognised in the 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.
Managementperiodicallyevaluatespositions taken in the tax returnswith respect tosituations inwhich
applicable tax regulations are subject to interpretationandestablishes provisionswhereappropriate.
