## 1. Statement of Significant Accounting Policies (continued) 

## (m) Revenue Recognition 

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the entity and the revenue can be reliably measured. 

Income is brought to account, in respect of the sale of goods, when the relevant goods are delivered to the purchaser. 

Rental income is brought to account when control over the right to receive rental payments is determined. 

Income attributable to franchise fees is brought to account only when the franchise fees have been earned, or where franchise fees are unpaid but recovery is certain. 

Dividend and trust income is brought to account when control over the right to receive dividend and trust payments is determined. 

Interest income is brought to account when control over the right to receive interest payments is determined. 

## (n) Recoverable Amounts of Non-Current Assets 

The carrying amounts of all non-current assets are reviewed at least annually to determine whether they exceed their recoverable amount. The recoverable amount is determined by reference to net cash flows which have not been discounted. 

## (o) Investments Accounted for Using Equity Method – Associated and Joint Venture Entities 

Interests in associated and joint venture entities are brought to account using the equity method. Under this method, the investment in associates and joint ventures is initially recognised at its cost of acquisition and its carrying value is subsequently adjusted for increases or decreases in the investor’s share of post- acquisition results and reserves of the associated and joint venture entities. The investment in associated and joint venture entities is decreased by the amount of dividends received or receivable. Investments in associates and joint ventures are carried at the lower of cost and recoverable amount in the accounts of the consolidated entity. 

Detailed equity accounting information concerning the consolidated entity’s interest in material associated and joint venture entities is provided in Note 39. 

## (p) Accounting for Investments in Partnerships 

Interests in jointly controlled partnerships are brought to account as follows: 

The consolidated entity’s share of the total assets employed by the partnership is brought to account in the “Investment in Partnership” line within “Investments accounted for using equity method” on the Statement of Financial Position. 

The liabilities of the partnership are brought to account in their respective financial statement categories of the consolidated entity, as the consolidated entity is jointly and/or severally liable for the liabilities of the partnerships. 

The consolidated entity's share of the net profit, or the total net loss, is brought to account as “Share of net profit of associates, joint ventures and partnerships accounted for using equity method” on the Statement of Financial Performance. 

The consolidated entity recognises a right of indemnity for joint and/or several liabilities within receivables on the Statement of Financial Position. 

## (q) Other Financial Assets 

Interests in non-subsidiary, non-associated corporations held for long-term purposes are included in “Other Financial Assets” (non-current) at cost. 

Shares in unlisted companies and units in unit trusts are included in “Other Financial Assets” (non-current) at cost. 

Listed shares held for trading are carried at net market value and are included in “Other Financial Assets” (current). Changes in net market value are recognised as revenue or expenses in the Statement of Financial Performance for the period. 

Where listed shares have been revalued, any capital gains tax which may become payable has not been taken into account in determining the revalued carrying amount. Where it is expected that a liability for capital gains tax exists, this amount is recognised in the Statement of Financial Performance for the reporting period. 

