2015 — Page 85

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

1

SIGNIFICANT ACCOUNTING POLICIES (Continued)

(s)

Revenue recognition (Continued)

(iv)

Ferry operations and related services

(t)

(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.

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 end of the reporting period. 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.

(u)

Related parties

(a)

A person, or a close member of that person's family, is related to the Group if that person:

(i)

has control or joint control over the Group;

(ii)

has significant influence over the Group; or

(iii)

is a member of the key management personnel of the Group.

Hong Kong Ferry (Holdings) Company Limited

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Annual Report 2015

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