annual_report_2019_en

(coco) #1

2019 Annual Report (^107)
viii. Contract costs
Certain incremental acquisition costs
(those paid to acquire a contract such as
commission) and fulfilment costs (those
incurred to deliver services to customers)
are capitalised and recognised, to the
extent that the costs are recoverable, over
the period of expected benefit, which is
generally the associated revenue contract
duration.
Incremental acquisition costs the Group
incurs in its major businesses are minimal
and generally expensed as incurred.
The Group recognises a contract cost
impairment when the carrying amount
of unamortised contract costs exceeds
the difference between the remaining
consideration expected and the associated
costs relating to providing those goods and
services under the contract.
ix. Contract assets and liabilities
When revenue is recognised under a
contract with a customer before the Group
becomes unconditionally entitled to the
consideration under the relevant payment
terms of the contract, a contract asset is
recognised. Contract assets are reclassified
to trade receivables when the right to
consideration becomes unconditional.
When consideration is received (or the
right to consideration is unconditional)
before the related revenue is recognised, a
contract liability is recognised.
For a single contract with the customer,
either a net contract asset or a net contract
liability is presented. For multiple contracts,
contract assets and contract liabilities of
unrelated contracts are not presented on a
net basis.
Trade receivables are recognised when the
right to consideration under a revenue
contract becomes unconditional, regardless
of the billing date.
x. Refund liabilities
A refund liability, such as the accrued
rebates to customers and other sales-based
incentives granted, is recognised when
the Group receives consideration from the
customer and expects to refund some or
all of that consideration to the customer.
Refund liabilities are presented in Other
liabilities in the consolidated statement of
financial position.
(ii) Rental income from operating leases
Rental income receivable under operating
leases is recognised in profit or loss in equal
instalments over the periods covered by the
lease term, except where an alternative basis is
more representative of the pattern of benefits
to be derived from the use of the leased
asset. Lease incentives granted are recognised
in profit or loss as an integral part of the
aggregate net lease payments receivable.
Variable lease payments that do not depend
on an index or a rate are recognised as income
in the accounting period in which they are
earned.
(r) Government grants
Government grants are initially recognised in
the statement of financial position at fair value
when there is reasonable assurance that they
will be received and that the Group will comply
with the conditions attaching to them.
Grants that compensate the Group for
expenses incurred are recognised as income in
profit or loss in the same periods in which the
expenses are incurred. Grants that compensate
the Group for the cost of an asset are initially
recognised as deferred income and then
recognised in profit or loss on a systematic and
rational basis over the useful life of the related
asset.
(s) Translation of foreign currencies
(i) Foreign currency transactions
Foreign currency transactions during the year
are translated to the respective functional
currencies of group entities at the foreign
exchange rates ruling at the transaction dates.
Monetary assets and liabilities denominated
in foreign currencies are translated to the
functional currency at the foreign exchange
rates ruling at the end of the reporting period.
Exchange gains and losses are recognised in
profit or loss.

Free download pdf