Notes on The Accounts (Continued)
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
(i) Deferred taxation
Deferred taxation is calculated under the liability method in respect of the taxation effect arising from all timing differences which are expected with reasonable probability to crystallise in the foreseeable future.
(j) Deferred profits
Profits from the sale of land and buildings to associated companies for development for resale and investment are deferred to the extent of the group's attributable interest in the associated companies. The deferred profits will be recognised and taken to profit and loss account as and when the properties are sold by the associated companies to third parties.
(k) Revenue recognition
(i) Fare receipts are recognised when the relevant bus services are provided.
(ii) Advertising revenue is recognised when the related advertisement or commercial appears before the public.
(iii) Interest income from bank deposits is accrued on a time proportion basis on the principal outstanding and at the rate applicable.
2. TURNOVER
Turnover comprises fares and other income from the operation of franchised motor buses by the group analysed as follows:
Fare receipts Advertising revenue
3. OPERATING PROFIT
Operating profit is arrived at
after charging:-
Auditors' remuneration
Depreciation
Provision for employees' retirement schemes
Provision for insurance
Provision for major repairs to motor buses
Provision for obsolescence of stores and spare parts
Operating lease charges for land and buildings Exchange loss
and after crediting:-
Interest income
Exchange gain
Income from listed investments
Dividend income from subsidiaries
21
1996
1995
$000's
$000's
752,195
762,718
21,365
22,715
773,560
785,433
The group
The company
1996
1995
1996
1995
$000's
$000's
$000's $000's
1,239
1,170
29,955
1,111
1,020 31,483 29,955 31,483 28,245 27,924 28,245 27,924
21,417 27,289
21,417 27,289
7,140
5,608
7,140
5,608
892
3,755
892
3,755
219
368
219
368
293
293
44,928
55,749
15,719
17,272
73
73
89
79
118,187
Page 25Page 26
Notes on The Accounts (Continued)
4.
EXCEPTIONAL ITEM