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62 WILLAS-ARRAY ELECTRONICS (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
MARCH 31, 2013
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
REVENUE RECOGNITION - continued
Rendering of services
Management fee income is recognised when management and administration services are provided.
Interest income
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the
Group and the amount of income can be measured reliably. 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 the
estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on
initial recognition.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment including leasehold land (classified as finance leases) and buildings held for use in
the production or supply of goods or services, or for administrative purpose are stated in the statements of financial
position at cost less accumulated depreciation and any accumulated impairment losses, if any.
Depreciation is charged so as to write off the cost of assets, over their estimated useful lives on the following bases:
Leasehold land and buildings Over the shorter of lease term or 50 years, straight-line method
Motor vehicles 20%, straight-line method
Plant and equipment 20%, straight-line method
Computer equipment,furniture and fixtures 20% to 331/ 3%, straight-line method
The estimated useful lives, residual values and depreciation method are reviewed at each year end, with the effect of
any changes in estimate accounted for on a prospective basis.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are
expected to arise from the continued use of asset.
Any gain or loss arising on disposal or retirement of an item of property, plant and equipment is determined as the
difference between the sale proceeds and the carrying amount of the asset and is recognised in profit or loss.