2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.32 Revenue recognition (continued)
(d) Aged care revenue
(i) Management fees represent amounts charged to residents at the retirement village under the long-term
management agreements. Deferred management fees are recognised upon performance of services,
calculated in accordance with terms stipulated in resident contracts.
(ii) Resident fees received from services rendered are recognised in statement of comprehensive income only
when it is probable that the economic benefits associated with the transactions will flow to the Group.
(iii) Subsidies that compensate the subsidiary for expenses incurred are recognised in statement of comprehensive
income as the services are rendered.
(e) Dividend income
Dividend income is recognised when the Group's right to receive payment is established.
(f) Management fees
Management fees represent fees charged to subsidiaries for assisting in the management of the subsidiaries and
these are recognised upon performance of services.
(g) Interest income
Interest income is recognised on an accrual basis using the effective interest method.
(h) Rental income
Rental income receivable under operating lease is recognised on a straight-line basis over the term of the lease.
Lease incentives granted are recognised as an integral part of the total rental income over the term of the lease.
Contingent rentals are recognised as income in the reporting period in which they are earned.
2.33 Foreign currency
(a) Functional and presentation currency
The individual financial statements of each entity in the Group are measured using the currency of the primary
economic environment in which the entity operates ("the functional currency"). The consolidated financial
statements are presented in Ringgit Malaysia (RM), which is also the Company’s functional currency.
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NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 (CONTINUED)
