Page 163 - Amata-one-report2020-en

BUSINESS OPERATION AND OPERATING RESULTS CORPORATE GOVERNANCE FINANCIAL STATEMENTS ENCLOSURES

e) Interest income

Interest income is calculated using the effective interest method and recognised on an
accrual basis. The effective interest rate is applied to the gross carrying amount of a

financial asset, unless the financial assets subsequently become credit-impaired when it
is applied to the net carrying amount of the financial asset (net of the expected credit loss

allowance).

f) Finance cost

Interest expense from financial liabilities at amortised cost is calculated using the
effective interest method and recognised on an accrual basis.

g) Dividends

Dividends are recognised when the right to receive the dividends is established.

5.2 Cash and cash equivalents

Cash and cash equivalents consist of cash in hand and at banks, and all highly liquid

investments with an original maturity of three months or less from the date of acquisition and
not subject to withdrawal restrictions.

5.3 Cost of real estate sales and land-use rights with infrastructure systems

In determining the costs of real estate sales and land-use rights with infrastructure systems

(presented under the caption of “cost of real estate sales” in the consolidated financial
statements), anticipated total development costs (taking into account actual costs incurred to
date) are attributed to units already sold on the basis of the salable area.

Selling expenses directly associated with projects, such as specific business tax and transfer
fees, are recognised as expenses when the sale occurs.

5.4 Trade and other receivables

Trade and other receivables are stated at the net realisable value. Allowance for doubtful
accounts is provided for the estimated losses that may be incurred in collection of receivables.

The allowance is generally based on collection experience and analysis of debt aging.

5.5 Real estate development costs and costs of land-use rights with infrastructure systems

Real estate development costs and costs of land-use rights with infrastructure systems
(presented under the caption of “Real estate development costs” in the consolidated financial

statements) are valued at the lower of specific cost and net realisable value. Cost included
cost of land, cost of land-use rights, and expenses directly related to real estate development.

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