WILLAS-ARRAY ELECTRONICS (HOLDINGS) LIMITED
82
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2016
3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
– continued
Revenue recognition
– continued
Rendering of services
Management fee and other services income is recognised when management and other 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.
Financial guarantee income
Income from providing financial guarantee is recognised in profit or loss over the guarantee period
on a straight line basis.
Property, plant and equipment
Property, plant and equipment including buildings and leasehold land (classified as financial
leases) and freehold land held for use in the production or supply of goods or services, or for
administrative purposes, are stated in the consolidated statement of financial position at cost or fair
value less subsequent accumulated depreciation and subsequent accumulated impairment losses,
if any.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual
values 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 33
1
/
3
%, straight-line method
