b'NOTES TO THE FINANCIAL STATEMENTS >for the year ended 30 June 2019NOTE 1. SIGNIFICANT ACCOUNTING POLICIESCONTINUEDDecision Makers (CODM). The CODM is responsible for theit is highly probable that a significant reversal will not occur. allocation of resources to operating segments and assessingRevenue is measured at the fair value of the consideration their performance. received or receivable.FOREIGN CURRENCY TRANSLATION Casino revenueThe financial statements are presented in Australian dollars,Revenue at the playing tables is recognised upon the which is Donaco International Limiteds functional anddifferences between chips at the closing and chips at the presentation currency. DNA Star Vegas Co Ltd, a subsidiaryopening of each table plus chips transferred from the playing within the group, has casino and hotel operations intable to the cage, less chips transferred from the cage to Cambodia. Its functional currency is the Thai baht. the playing table. Revenue is recognised on a net basis after commission and profit sharing is paid to junket operators.Donaco Singapore Pte Ltd has an interest in the Lao Cai International Hotel Joint Venture Company which operates Revenue from slot machines represents the amount received a casino and hotel in Vietnam. The functional currency of theover the exchange counter less the amount returned to Joint Venture Company is the Vietnamese dong. customers and profit-sharing paid.The subsidiaries of Donaco that operate in the aforementionedSale of goodsforeign countries are consolidated into the Hong Kong GroupThe consolidated entity sale of goods consist of food and (Star Vegas Group) and the Singapore Group (Aristo Group). beverages sales. Revenue from the sale of goods is recognised At this level, the presentation currency is the US dollar. at the point of sale, when a group entity sells a product toSubsequently, these consolidated groups are consolidated withthe customer.the Australian operations and converted to Australian dollars. Rendering of servicesForeign currency transactions Revenue from the provision of accommodation and hospitality Foreign currency transactions are translated into Australianservices is recognised in the accounting period in which the dollars using the exchange rates prevailing at the dates of theservices are provided to the customer.transactions. Foreign exchange gains and losses resulting fromComplimentary goods or servicesthe settlement of such transactions and from the translation at financial year-end exchange rates of monetary assets andFor gaming transactions that include complimentary goods or liabilities denominated in foreign currencies are recognised services being provided to customers, the consolidated entity in profit or loss. allocates revenue from the gaming transaction to the good or service provided based on the standalone selling price whichForeign operations is the arms length price for that good or service available to The assets and liabilities of foreign operations are translatedthe public.into Australian dollars using the exchange rates at theInterestreporting date. The revenues and expenses of foreign operations are translated into Australian dollars using theInterest revenue is recognised as interest accrues using the average exchange rates, which approximate the rates at theeffective interest method. This is a method of calculating the dates of the transactions, for the period. All resulting foreignamortised cost of a financial asset and allocating the interest exchange differences are recognised in other comprehensiveincome over the relevant period using the effective interest income through the foreign currency reserve in equity. rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial assetGoodwill, casino licence and fair value adjustments arisingto the net carrying amount of the financial asset.from the acquisition of a foreign operation are treated as assets and liabilities of the foreign operations and translatedINCOME TAXat the closing rate.The income tax expense or benefit for the period is the The foreign currency reserve is recognised in profit or losstax payable on that periods taxable income based on the when the foreign operation or net investment is disposed of. applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributableREVENUE RECOGNITION to temporary differences, unused tax losses and the Revenue is recognised when control of the good or service adjustment recognised for prior periods, where applicable.is transferred to the customer, and only to the extent that44 DONACO INTERNATIONAL LIMITED 2019 ANNUAL REPORT'