NOTES TO THE CONSOLIDATED FINANCIAL  STATEMENTS  (RMB AND US$ AMOUNTS EXPRESSED IN THOUSANDS, EXCEPT PER SHARE DATA)  2.  Basis of preparation and accounting policies (cont’d) 2.3  Summary of significant accounting policies (cont’d) (f)  Revenue recognition (cont’d) The specific recognition criteria described below must also be met before revenue is recognized: Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net  of returns and allowances, trade discounts and volume rebates. Revenue is recognized when the significant  risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable,  the associated costs and possible return of goods can be estimated reliably, and there is no continuing  management involvement with the goods and the amount of revenue can be measured reliably. Revenue from rendering of services relates to project management contracts and hotel room and restaurant  operations. Revenue is recognized over the period in which the services are rendered, by reference to  completion of the specific transaction assessed on the basis of the actual service provided as a proportion of  the total services to be performed. For all financial instruments measured at amortized cost and interest-bearing financial assets classified as  available-for-sale, interest income is recorded using the effective interest rate (“EIR”). EIR is the rate that exactly  discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a  shorter period, where appropriate, to the net carrying amount of the financial asset or liability. Interest income  is included in finance income in the statement of profit or loss. Rental income receivable under operating leases is recognized in the statement of profit or loss on a straight- line basis over the term of the lease. Lease incentives granted are recognized as an integral part of the total  rental income to be received. Contingent rentals are recognized as income in the accounting period in which  they are earned. Dividend income is recognized when the Group’s right to receive the payment is established, which is generally  when shareholders approve the dividend. Government grants are recognized where there is reasonable assurance that the grant will be received and  all attached conditions will be complied with. When the grant relates to an expense item, it is recognized as  income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are  expensed. When the grant relates to an asset, it is recognized as income in equal amounts over the expected  useful life of the related asset. (g)  Government grants Dividends Interest income Rental income Rendering of services Sale of goods China Yuchai International Limited | Annual Report 2013 44