| ANNUAL REPORT 2015
120
NOTES TO THE FINANCIAL STATEMENTS
30 June 2015 (cont’d)
4. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
4.19 Revenue recognition (cont’d)
(b) Dividend income
Dividend income is recognised when the right to receive payment is established.
(c) Interest income
Interest income is recognised as it accrues, using the effective interest method.
(d) Rental income
Rental income is accounted for on a straight line basis over the lease term of an ongoing lease.
(e) Royalty income
Royalty income is recognised on an accrual basis in accordance with the substance of the relevant agreements.
4.20 Operating segments
Operating segments are defined as components of the Group that:
(a) engages in business activities from which it could earn revenues and incur expenses (including revenues and
expenses relating to transactions with other components of the Group);
(b) whose operating results are regularly reviewed by the chief operating decision maker of the Group (i.e. the Chief
Executive Officer of the Group) in making decisions about resources to be allocated to the segment and assessing
its performance; and
(c) for which discrete financial information is available.
An operating segment may engage in business activities for which it has yet to earn revenues.
The Group reports separately information about each operating segment that meets any of the following quantitative
thresholds:
(a) Its reported revenue, including both sales to external customers and intersegment sales or transfers, is ten percent
(10%) or more of the combined revenue, internal and external, of all operating segments.
(b) The absolute amount of its reported profit or loss is ten percent (10%) or more of the greater, in absolute amount
of:
(i) the combined reported profit of all operating segments that did not report a loss; and
(ii) the combined reported loss of all operating segments that reported a loss.
(c) Its assets are ten percent (10%) or more of the combined assets of all operating segments.
Operating segments that do not meet any of the quantitative thresholds may be considered reportable, and separately
disclosed, if the management believes that information about the segment would be useful to users of the financial
statements.
