NOTES
TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2016
(In Singapore dollars)
55
MTQ CORPORATION LIMITED
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.7
Transactions with non-controlling interests
Non-controlling interests represents the equity in subsidiaries not attributable, directly or indirectly, to owners of
the Company.
Changes in the Company’s ownership interest in a subsidiary that do not result in a loss of control are accounted
for as equity transactions. In such circumstances, the carrying amounts of the controlling and non-controlling
interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the
amount by which the non-controlling interest is adjusted and the fair value of the consideration paid or received is
recognised directly in equity and attributed to owners of the Company.
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.
