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NOTES TO FINANCIAL STATEMENTS
(cont’d)
31 March 2016

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
2.13 Income recognition (cont’d)
Donations

Unconditional donations are recognised upon receipt.
Licence fees

Licence fees are recognised in accordance with terms of licensing agreement.
Royalties

Royalties are recognised on sale, by licensor, of products using the technology granted.
Dividends

Dividends are recognised in the financial year in which the right to receive payment is established.
Rental income

Rental income receivable under operating leases is recognised in the profit or loss on a straight-line basis over
the term of the lease.

2.14 Finance income and finance costs

Finance income comprises interest income generated from fixed deposits, bank deposits and finance leases.
Interest income is recognised as it accrues in the profit or loss, using the effective interest method. Interest income
on the finance lease is recognised in the profit or loss over the period of the lease so as to earn an approximately
constant periodic rate of return on the remaining balance of the finance lease receivables for each reporting
period.

Finance costs comprise interest expense on borrowings. Borrowing costs that are not directly attributable to the
acquisition, construction or production of a qualifying asset are recognised in the profit or loss using the effective
interest method.

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