Page 228 - BTSGroup ONE REPORT 2021/22_EN

226 l Introduction l Nature of Business l Organisation and Shareholding Structure l Business Review l Corporate Governance l Financial Statements l Other Information l

Revenues from sales Other income

Revenues from sales of land, land and houses and condominium units Management income is recognised when services have been rendered,
are recognised at the point in time when control of the real estate is with reference to the term of the contract, excluding value added tax.
transferred to the buyer, generally upon transfer of the legal ownership.
Revenue from sales of real estate is measured at the amount of the Dividends are recognised when the right to receive the payment is
consideration received after deducting discounts and considerations established.
payable to the buyer. The terms of payment are in accordance with the
payment schedule specified in the buyer contract. Finance cost

Interest expense from financial liabilities at amortised cost is calculated
Revenue from sale of goods is recognised at the point in time when using the effective interest method and recognised on an accrual basis.
control of the asset is transferred to the customer, generally on delivery
of the goods. Revenue is measured at the amount of the consideration
received or receivable, excluding value added tax of goods supplied 4.2 Cash and cash equivalents
after deducting returns, discounts, allowances and price promotions to Cash and cash equivalents consist of cash in hand and at banks, and
customers. all highly liquid investments with an original maturity of three months or
less and not subject to withdrawal restrictions.
Vendors income

The Group has agreements with vendors as normal business practice, 4.3 Real estate development costs
for volume-related allowances, and sale promotion campaign and Real estate development costs are valued at the lower of cost and net
marketing allowances. Vendors income is recognised when all obligations realisable value.
are met and can be measured reliably based on the terms of the contract.
Portion of vendors income is recognised as a reduction in cost of sales Real estate development costs consist of the costs of land, land
and inventory. Uncollected amount are presented in the statements of development, project management fees, design, construction and related
financial position as “Other receivables” or otherwise are offset with interest.
“Trade account payables” depending on the condition in the contracts.
4.4 Inventories
Interest income Inventories are valued at the lower of cost under the weighted average
Other interest income is calculated using the effective interest method method and net realisable value.
and recognised on an accrual basis. The effective interest rate is applied
to the gross carrying amount of a financial asset, unless the financial 4.5 Cost to fulf ll a contract
assets subsequently become credit-impaired when it is applied to the The Group recognises cost to fulfill a contract with a customer which
net carrying amount of the financial asset (net of the expected credit generate or enhance resources of the entity that will be used in satisfying
loss allowance). performance obligations in the future and the costs are expected to be