Page 162 - Amata-one-report2020-en

4.2 Leases

On adoption of TFRS 16, the Group recognised lease liabilities in relation to leases that

previously classified as operating leases measured at the present value of the remaining
lease payments, discounted using the Group’s incremental borrowing rate as of 1 January
2020. For leases that previously classified as finance leases, the Group recognised the

carrying amount of the lease assets and lease liabilities before transition as right-of-use
assets and lease liabilities, respectively at the date of initial application.

5. Significant accounting policies

5.1 Revenue recognition

a) Revenue from sales of real estate and land-use rights with infrastructure systems

Revenue from sales of real estate and land-use rights with infrastructure systems
(presented under the caption of “Revenue from real estate sales” in the consolidated
financial statements) are recognised at the point in time when control of the real estate

is transferred to the customer, generally upon transfer of the legal ownership.
Revenue from sales of real estate is measured at the amount of the consideration
received after deducting discounts and considerations payable to the customer.

The terms of payment are in accordance with the payment schedule specified in the
customer contract. Considerations received before transferring control of the real estate
to the customer are presented under the caption of “Advances received from customers”

in the statement of financial position.
b) Sales of water

Sales of tap water and raw water, which are included in revenue from utility services, are
recognised when water is delivered to customers.

c) Rendering of services

Service revenues, which include waste water treatment and management of common
areas of the industrial estates, which are included in revenue from utility services, are
recognised when services have been rendered taking into account the stage of
completion.

d) Rental income

Rental income which consists of land rental, rental of office building and factory building
is recognised as an income on straight-line basis over the lease term.

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