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/ MTQ CORPORATION LIMITED /
ANNUAL REPORT
2014/2015
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2015
(In Singapore dollars)
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
2.8 Revenue 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 sales taxes or duty. The Group assesses its revenue arrangements to determine
if it is acting as principal or agent. The following specific recognition criteria must also be met before revenue is
recognised:
Revenue from trading sales is recognised upon the transfer of significant risks and rewards of ownership of the
goods to the customer, usually on delivery and acceptance of the goods sold. 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 repair work, engineering, overhaul, service work and construction contracts is recognised by
reference to the stage of completion at the end of the reporting period. Stage of completion is assessed by
reference to the ratio of labour hours and costs incurred to-date to the estimated total labour hours and costs for
each contract, with due consideration given to the inclusion of only those costs that reflect work performed. Where
the contract outcome cannot be measured reliably, revenue is recognised to the extent of the expenses recognised
that are recoverable.
Revenue from rental services is recognised on a straight-line basis over the lease term.
License fee revenue is recognised on an accrual basis when the Group has the right to receive payment under the
relevant agreement and has performed its obligations.
Interest income is recognised using the effective interest method.
Dividend income is recognised when the Group's right to receive payment is established.
2.9 Employee benefits
Defined contribution plans
The Group participates in the national pension schemes as defined by the laws of the countries in which it has
operations. In particular, the Singapore companies within the Group make contributions to the Central Provident
Fund scheme in Singapore, a defined contribution pension scheme. Contributions to defined contribution pension
schemes are recognised as an expense in the period in which the related service is performed.
Employee leave entitlements
Employee entitlements to annual leave are recognised as a liability when they are accrued to the employees. The
estimated liability for leave is recognised for services rendered by employees up to the end of the reporting period.
Equity compensation plan
Employees of the Group receive remuneration in the form of share-based payment transactions as consideration
for services rendered.
