GHL System Berhad Annual Report 2017

ANNUAL REPORT 2017 79 NOTES TO THE FINANCIAL STATEMENTS 31 December 2017 CONT’D 4. OPERATING SEGMENT (cont’d) Major customers There are no major customers with revenue equal or more than ten (10) percent of the Group revenue. As such, information on major customers is not presented. 5. REVENUE Group Company 2017 2016 2017 2016 RM RM RM RM Rental of EDC equipment 48,326,147 46,035,910 104,243 152,542 Sales of value-added solutions 75,127,070 20,400,629 9,203,261 6,470,501 Sales of goods 15,513,505 35,508,687 5,692,192 3,261,842 Sales of prepaid air-time top-ups 114,714,496 143,978,130 - - Management fees - - 6,149,256 4,952,068 253,681,218 245,923,356 21,148,952 14,836,953 Revenue is measured at the fair value of the consideration received or receivable, net of discounts and rebates. Revenue is recognised to the extent that it is probable that the economic benefits associated with the transaction would flow to the Group, and the amount of revenue and the cost incurred or to be incurred in respect of the transaction can be reliably measured and specific recognition criteria have been met for each of the activities of the Group as follows: (a) Rental of EDC equipment Rental income is accounted for on a straight line basis over the lease term of an ongoing lease. The aggregate cost of incentives provided to the lessee is recognised as reduction of rental income over the lease term on a straight line basis. (b) Sales of value-added solutions Revenue in respect of the rendering of services is recognised when the stage of completion at the end of each reporting period and the cost incurred can be reliably measured. The stage of completion is determined by the services performed to date as a percentage of total services to be performed. (c) Sales of goods Revenue from sale of goods is recognised when significant risk and rewards of ownership of the goods has been transferred to the customer and where the Group does not have continuing managerial involvement over the goods, which coincides with the delivery of goods and acceptance by customers. (d) Sales of prepaid air-time top-ups The Group, being a distributor in the sales of prepaid airtime top-ups, is in substance acting as an agent for the operators. The revenue associated with the sales of prepaid airtime top-ups to end-users is recognised on a net basis, which represents the margin earned. (e) Management fees Management fee is recognised when management services is rendered.