(m) Revenue Recognition  (p) Accounting for Investments in Partnerships  (n) Recoverable Amounts of Non-Current Assets  (q) Other Financial Assets  (o) Investments Accounted for Using Equity  Method – Associated and Joint Venture  Entities  HARVEY NORMAN HOLDINGS LIMITED AND ITS CONTROLLED ENTITIES – ANNUAL REPORT 2003 31  Detailed equity accounting information concerning the  consolidated entity’s interest in material associated  and joint venture entities is provided in Note 39.  Interests in associated and joint venture entities are  brought to account using the equity method. Under  this method, the investment in associates and joint  ventures is initially recognised at its cost of acquisition  and its carrying value is subsequently adjusted for  increases or decreases in the investor’s share of post- acquisition results and reserves of the associated and  joint venture entities. The investment in associated  and joint venture entities is decreased by the amount  of dividends received or receivable. Investments in  associates and joint ventures are carried at the lower  of cost and recoverable amount in the accounts of the  consolidated entity.  Where listed shares have been revalued, any capital  gains tax which may become payable has not been  taken into account in determining the revalued  carrying amount. Where it is expected that a liability  for capital gains tax exists, this amount is recognised  in the Statement of Financial Performance for the  reporting period.  Listed shares held for trading are carried at net market  value and are included in “Other Financial Assets”  (current). Changes in net market value are recognised as revenue or expenses in the Statement  of Financial Performance for the period.  Shares in unlisted companies and units in unit trusts  are included in “Other Financial Assets” (non-current)  at cost.  Interests in non-subsidiary, non-associated corporations held for long-term purposes are included  in “Other Financial Assets” (non-current) at cost.  The carrying amounts of all non-current assets are  reviewed at least annually to determine whether they  exceed their recoverable amount. The recoverable  amount is determined by reference to net cash flows  which have not been discounted.  Interest income is brought to account when control  over the right to receive interest payments is  determined.  Dividend and trust income is brought to account when  control over the right to receive dividend and trust  payments is determined.  Income attributable to franchise fees is brought to  account only when the franchise fees have been  earned, or where franchise fees are unpaid but  recovery is certain.  Rental income is brought to account when control over  the right to receive rental payments is determined.  Income is brought to account, in respect of the sale of  goods, when the relevant goods are delivered to the  purchaser. Revenue is recognised to the extent that it is probable  that the economic benefits will flow to the entity and  the revenue can be reliably measured.  Interests in jointly controlled partnerships are brought  to account as follows:  The consolidated entity’s share of the total assets  employed by the partnership is brought to account in  the “Investment in Partnership” line within “Investments accounted for using equity method” on  the Statement of Financial Position.  The liabilities of the partnership are brought to account  in their respective financial statement categories of the  consolidated entity, as the consolidated entity is jointly  and/or severally liable for the liabilities of the  partnerships.  The consolidated entity's share of the net profit, or the  total net loss, is brought to account as “Share of net  profit of associates, joint ventures and partnerships  accounted for using equity method” on the Statement  of Financial Performance.  The consolidated entity recognises a right of indemnity  for joint and/or several liabilities within receivables on  the Statement of Financial Position.  Notes to the Financial Statements (continued)  1.  Statement of Significant Accounting Policies (continued) 