NOTES TO THE FINANCIAL STATEMENTS
For the Financial Year Ended 31 December 2014
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.27 LEASES (CONT’D)
(b)
WHERE THE GROUP IS THE LESSOR
Assets leased out under operating leases are included in property, plant and equipment, investment properties and
completed development properties for sale.
Rental income from operating leases (net of any incentives given to lessees) is recognised in profit or loss on a
straight-line basis over the lease term.
Initial direct costs incurred by the Group in negotiating and arranging an operating lease are added to the carrying
amount of the leased asset and recognised as an expense in profit or loss over the lease term on the same bases
as the rental income.
Contingent rents are recognised as income in profit or loss in the financial year in which they are earned.
2.28 INCOME RECOGNITION
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue
can be reliably measured, regardless of when the payment is made. Revenue is measured at the fair value of consideration
received or receivable, taking into account contractually defined terms of payment and excluding discounts, rebates, and
taxes or duty. The Group assesses its revenue arrangements to determine if it is acting as principal or agent.
Interest income is recognised as interest accrues (using the effective interest method) unless collectibility is in doubt.
Revenue from sale and delivery of refined tin metal and by-products is recognised upon transfer of significant risks and
rewards of ownership to the buyer. Revenue is not recognised to the extent where there are significant uncertainties
regarding recovery of the consideration due, associated costs or the possible return of goods.
Revenue from tin warrant and other service charges are recognised upon performance of services.
Rental income is accounted for on a straight-line basis over the lease terms. The aggregate costs of incentives provided
to lessees are recognised as a reduction of rental income over the lease term on a straight-line basis.
Profits from sale of marketable securities are recognised upon conclusion of the contract for sale.
Profits from sale of completed properties are recognised when the significant risks and rewards of ownership of the
properties have been transferred to the buyer.
Dividend income from investments is recognised when the Group’s right to receive payment is established.
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THE STRAITS TRADING COMPANY LIMITED ANNUAL REPORT 2014
