MISC Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS 195 Financial Statements 2. SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) 2.3 Summary of significant accounting policies (cont'd.) (v) Revenue recognition (cont'd.) (iii) Lightering income Income from lightering charges is recognised on percentage of completion of voyages, calculated on a discharge-to- discharge basis. The voyage revenue is recognised evenly over the period from a ship's departure from its previous discharge point to its projected departure from its next discharge point. (iv) Other shipping related income and non-shipping income Revenue fromservices rendered is recognised net of service taxes and discounts as andwhen the services are performed. (v) Finance income on lease receivables Finance income on lease receivables is recognised according to the effective interest rate method so as to provide constant periodic rate of return on the net investment. (vi) Construction contracts Revenue from construction contracts is accounted for in accordance with the policy set out in Note 2.3(f). (vii) Interest income Interest income is recognised on an accrual basis using the effective interest method. (viii) Dividend income Dividend income is recognised when the Group's right to receive payment is established. (w) Non-current assets held for sale Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset is available for immediate sale in its present condition, subject only to terms that are usual and customary. Immediately before classification as held for sale, the measurement of the non-current assets is brought up-to-date in accordance with applicable MFRS. Then, on initial classification as held for sale, non-current assets are measured in accordance with MFRS 5, Non-Current Assets Held for Sale and Discontinued Operations that is, at the lower of carrying amount and fair value less costs to sell. Any differences are included in the income statement. (x) Repairs and maintenance Repairs and maintenance costs are recognised in the income statement in the period they are incurred.