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SEE HUP SENG LIMITED
Annual Report 2012
44
Notes to the Financial Statements
31 DECEMBER 2012
2 Significant Accounting Policies (Continued)
(b) Revenue Recognition (Continued)
(ii) Rendering of services
Service income, management and consultancy fees are recognised in the period in which the
services are rendered.
(iii) Interest income
Interest income is recognised on a time proportion basis using the effective interest method.
(iv) Dividend income
Dividend income is recognised when the right to receive payment is established.
(c) Group Accounting
(i) Subsidiaries
Consolidation
Subsidiaries are entities (including special purpose entities) over which the Group has power to
govern the financial and operating policies so as to obtain benefits from its activities, generally
accompanied by a shareholding giving rise to a majority of the voting rights. The existence and
effect of potential voting rights that are currently exercisable or convertible are considered when
assessing whether the Group controls another entity. Subsidiaries are consolidated from the date
on which control is transferred to the Group. They are de-consolidated from the date on which
control ceases.
In preparing the consolidated financial statements, transactions, balances and unrealised gains on
transactions between group entities are eliminated. Unrealised losses are also eliminated but are
considered an impairment indicator of the asset transferred. Accounting policies of subsidiaries
have been changed where necessary to ensure consistency with the policies adopted by the
Group.
Subsidiaries are consolidated from the date of acquisition, being the date on which the Group
obtains control, and continue to be consolidated until the date that such control ceases.
Non-controlling interests are that part of the net results of operations and of net assets of
a subsidiary attributable to the interests which are not owned directly or indirectly by the
equity holders of the Company. They are shown separately in the consolidated statement of
comprehensive income, statement of changes in equity and balance sheet. Total comprehensive
income is attributed to the non-controlling interests based on their respective interests in a
subsidiary, even if this results in the non-controlling interests having a deficit balance.