Page 165 - KWAP_AR2022

FoR BetteR RetuRns Annual Report 2022 163

notes to the
financial statements
for the year ended 31 december 2022

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.15 Revenue And Income Recognition (continued)

(c) Gains or losses from divestment

gains or losses on disposal of investments are recognised upon the satisfaction of all terms of the agreement
leading to the sale of the investments.

(d) Rental income from investment properties
rental income from investment properties is recognised in profit or loss on a straight-line basis over the term
of the lease. lease incentives granted are recognised as an integral part of the total rental income, over the
term of the lease. rental income from sub-leased property is recognised as “revenue”.

(e) Service charge income
service charge income is recognised in the accounting period in which the service is rendered and the
customer receives and consumes the benefit provided by the group and KWap, and the group and KWap
have a present right to payment for the said services.

(f) Utilities income
revenue from air-conditioner and chilled water charges are recognised upon the supply of the air-conditioner
and chilled water to the customer and the customer receives and consumes the supplies, and the group and
KWap have a present right to payment for the said supplies.
2.16 Income Tax

(a) Current tax
current tax assets and liabilities are measured at the expected recoverable amount from the taxation
authorities. the tax rates and tax laws employed for the computation of the recoverable amount are the tax
rates and laws enacted or substantively enacted by the reporting date.

current taxes are recognised in profit or loss with the exception of tax related items which are recognised
outside profit or loss, either in other comprehensive income or directly in equity.

KWap is exempted from income tax in accordance with section 127[3a] of the income tax act 1967 for
all income from domestic sources as well as the withholding tax in accordance with section 107a(1) and
section 109 on the interests and special classes of income. all income from international sources are subject
to the income tax laws and rates of the respective country of origin.