Low Keng Huat (Singapore)

[Jacmar]

Let me try to answer your questions as best I can as I am not an acct.

1. Will the revenues be recognised in bulk?
<<yes when the project is TOP. before that it is not recognised in the P/L statement.>>
I dont really have the idea how the revenues is collected. Isit spread over a length of time?
<<progress payments>>
2. How do buyers actually pay for the offices? Isit also over a period of time.<<progress payments>>

3. Once the property is sold, is the asset automatically written off the balance sheet?
<< even though the revenues is not recognised, the progress payments is still collected. you will notice in the B/S that there is a line item in Current Assets " development properties". meanwhile over at the CF statement you will see the item "Payables" this the money coming in knock off against development properties. you can say actually between the two items is the profit ie cf coming in.
once the property is TOP(that's what you meant by sold off), then the "development properties" will be reduced accordingly and then the profit and loss shows reflects this sales and cogs.>>
Thanks for helping.