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Hong Kong Ferry (Holdings) Company Limited Annual Report 2013

Notes to the Accounts (Continued)

1

SIGNIFICANT ACCOUNTING POLICIES (Continued)

(r) Revenue recognition (Continued)

(iv) Ferry operations and related services

(v)

Revenue relating to ferry operations is recognised when the relevant ferry services are provided.

Travel business

Revenue arising from the travel business is recognised on the completion date of the tours or when the relevant services are provided.

(vi)

Interest income

Interest income is recognised as it accrues using the effective interest method.

(vii)

Dividends

Dividend income from listed investments is recognised when the share price of the investment goes ex-

dividend.

(s) Deferred interest income

Where properties are sold under deferred terms with part of the sales proceeds being receivable after an interest-free period, the differences between the sale prices with and without such terms are treated as deferred income and is released to profit or loss on a straight-line basis over the interest-free period.

(t)

Translation of foreign currencies

Foreign currency transactions during the year are translated at the foreign exchange rates ruling at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated at the foreign exchange rates ruling at the balance sheet date. Exchange gains and losses are recognised in profit or loss.

Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the foreign exchange rates ruling at the transaction dates.