DISCLOSURE
(MASB 32 PARA 50)
a. the method used to determine the stage of
completion for property development activities;
2.13 Property development costs
Property development costs comprise all costs that are
directly attributable to development activities or that can be allocated on a
reasonable basis to such activities.
When the financial outcome of a development activity can be
reliably estimated, property development revenue and expenses are recognised in
the statement of comprehensive income by using the stage of completion method.
The stage of completion is determined by the proportion that property
development costs incurred for work performed to date to the estimated total
property development costs.
Where the financial outcome of a development activity cannot
be reliably estimated, property development revenue is recognised only to the
extent of property development costs incurred that is probable will be
recoverable, and property development costs on properties sold are recognised
as an expense in the period in which they are incurred.
Any expected loss on a development project, including costs
to be incurred over the defects liability period, is recognised as an expense
immediately.
b. the
revenue and related expenses recognised in the
income statement;
2.21 Revenue
Revenue is recognised to the extent that it is probable that
the economic benefits will flow to the Group and the Company and the revenue
can be reliably measured. Revenue is measured at the fair value of
consideration received or receivable.
(a) Revenue from property development activities
Revenue from sale of development properties is accounted
for by using the stage of completion method as described in Note 2.13.
c. in respect of property development
costs carried
as an asset:-
i. the gross amount of property development
costs;
ii. property development costs
incurred during the
period;
iii. amount of property
development costs recognised
as an expense in the income statement
iv. disposals or transfers to other category
of assets or
any other changes in carrying amount
during the
period
d. in
respect of progress billing:-
i. accrued billings as current asset,
ii. progress billings as current
liability
e. the amount of cash held under Housing
Development Account [opened and maintained by licensed housing developer under
section 7A of the Housing Development (Control and Licensing) Act 1966 and any
other restrictions on cash:-
f. In
respect of land held for property development:-
i. the gross carrying amount of the cost
and
accumulated impairment loss; and
ii. a
reconciliation of the carrying amount at the
beginning and end of period.
g. the
existence and amount of restrictions on title of
land
liabilities.
