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SUNMOON FOOD COMPANY LIMITED
ANNUAL REPORT 2015
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
2.4
Investment in associate
(Continued)
Unrealised gains on transactions between the Group and its associate are eliminated to the extent of the
Group’s interest in the associate. Unrealised losses are also eliminated unless the transaction provides
evidence of an impairment of the asset transferred.
After application of the equity method of accounting, the Group determines whether it is necessary to
recognise any additional impairment loss with respect to the Group’s net investment in an associate.
The financial statements of the associate is prepared as of the same reporting date as the Company. Where
necessary, adjustments are made to bring the accounting policies into line with those of the Group.
Upon loss of significant influence over the associate, the Group measures and recognises any retained
investment at its fair value. Any difference between the carrying amount of the associate upon loss of
significant influence and the fair value of the aggregate of the retained investment and proceeds from
disposal is recognised in profit or loss.
2.5
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable for the sale of goods in
the ordinary course of business. 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. Revenue is presented, net of
rebates, discounts and sales related taxes.
Revenue from sale of goods (i.e. sale of fresh and processed fruits) is recognised when goods are delivered
to the customer and the significant risks and rewards of ownership has been transferred to the customer,
recovery of the consideration is probable, the associated costs and possible return of goods can be estimated
reliably.
Interest income is recognised using the effective interest method.
Dividend income from investment is recognised when the shareholders’ right to receive payment has been
established.
