China Communications Services Corporation Limited Annual Report 2015
118
NOTES TO THE
CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2015
2. SIGNIFICANT ACCOUNTING POLICIES
(continued)
(w) Revenue recognition
(continued)
(ii) Services rendered
Revenue from design services rendered is recognised in profit or loss in proportion to the stage of completion
of the transaction at the end of the reporting period.
Revenue from other services rendered is recognised upon the delivery or performance of the services.
(iii) Sales of goods
Revenue is recognised when goods are delivered at the customers’ premises which is taken to be the point in
time when the customer has accepted the goods and the related risks and rewards of ownership. Revenue
excludes value added tax or other sales taxes and is after deduction of any trade discounts.
(iv) Rental income from operating leases
Rental income receivable under operating leases is recognised in profit or loss in equal installments 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. Contingent rentals are recognised as income
in the accounting period in which they are earned.
(v) Dividends
— Dividend income from unlisted investments is recognised when the shareholder’s right to receive payment
is established.
— Dividend income from listed investments is recognised when the share price of the investment goes ex-
dividend.
(vi) Interest income
Interest income is recognised as it accrues using the effective interest method.
