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Gamuda Berhad (29579-T) • Annual Report 2012
2.
Summary of significant accounting policies (cont’d.)
2.20 Employee benefits (cont’d.)
(iv)
Share based compensation (cont’d.)
At each reporting date, the Group revises its estimates of the number of options that are expected to
become exercisable on vesting date. It recognises the impact of the revision of original estimates, if any,
in the profit or loss, and a corresponding adjustment to equity over the remaining vesting period. The
equity amount is recognised in the share option reserve until the option is exercised, upon which it will
be transferred to share premium, or until the option expires, upon which it will be transferred directly to
retained profits.
2.21 Revenue recognition
Revenue and other income are recognised to the extent that it is probable that the economic benefits
associated with the transaction will flow to the Group and the revenue can be reliably measured. Revenue and
other income are measured at the fair value of consideration received or receivable. The following specific
recognition criteria must also be met before revenue is recognised:
a)
Revenue
(i)
Engineering and construction contracts
Revenue from engineering and construction contracts is accounted for by the stage of completion
method as described in Note 2.14.
(ii)
Development properties
Revenue from sale of development properties is accounted for by the stage of completion method
in respect of all building units that have been sold. The stage of completion is determined by
reference to the costs incurred to date to the total estimated costs where the outcome of the
projects can be reliably estimated. All anticipated losses are fully provided for.
(iii) Sale of goods and services
Revenue relating to the sale of goods is recognised net of sales taxes and discounts upon the
transfer of risks and rewards. Revenue from services rendered is recognised net of service taxes
and discount as and when the services are performed. Sale of goods and services of the Group
includes trading of construction materials and sales of manufactured products.
(iv)
Supply of water and related services
Revenue from management, operation and maintenance of dams and water treatment facilities
are recognised net of discounts as and when the services are performed.
NoTES To ThE FINANCIAL STATEMENTS
31 July 2012