subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair
value is negative. Any gains or losses arising from changes in fair value on derivatives are taken directly to the income statement. The fair value of
interest rate swap contracts is determined by reference to market values for similar instruments.
Assets carried at cost
If there is objective evidence that an impairment loss on an unquoted equity instrument that is not carried at fair value because its fair value cannot
be reliably measured, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated
future cash flows discounted at the current market rate of return for a similar financial asset.
Assets carried at amortised cost
In relation to trade receivables, a provision for impairment is made when there is objective evidence (such as the probability of insolvency or
significant financial difficulties of the debtor) that the Group will not be able to collect all of the amounts due under the original terms of the invoice.
The carrying amount of the receivable is reduced through use of an allowance account. Impaired debts are de-recognised when they are assessed as
uncollectable.
Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured.
Revenue is measured at the fair value of the consideration receivable, excluding discounts, rebates, VAT and other sales taxes or duty. The following
criteria must also be met before revenue is recognised:
Rendering of services
Revenue from the exchange fees in the estate agency business is recognised by reference to the legal exchange date of the housing transaction.
Revenue from the supply of surveying services is recognised upon the completion of the professional survey by the surveyor.
Financial services income
Revenue from mortgage procuration fees is recognised by reference to the completion date of the mortgage on the housing transaction. Revenue
from policy sales is recognised by reference to the date that the policy is accepted by the insurer.
Interest income
Revenue is recognised as interest accrues (using the effective interest method - that is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial instrument to the net carrying amount of the financial asset).
Rental income
Financial Statements
Rental income including the effect of lease incentives from sub-let properties is recognised on a straight line basis over the lease term.
Dividends
Revenue is recognised when the Group’s right to receive the payment is established.
Exceptional items
The Group presents as exceptional items on the face of the income statement those material items of income and expense which, because of the
nature and expected infrequency of the events giving rise to them, merit separate presentation to allow shareholders to understand better the
elements of financial performance in the year, so as to facilitate comparison with prior periods and to assess better trends in financial performance.
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