EXCEL FORCE MSC BERHAD Annual Report 2017

75 3. Significant Accounting Policies (cont’d) (u) Non-current assets held for sale Non-current assets (or disposal group) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. Such non-current assets (or disposal groups) classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. The criteria for held for sale classification is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such asset (or disposal group). Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification. Property, plant and equipment and intangible assets are not depreciated or amortised once classified as held for sale. (v) Deferred revenue Deferred revenue represents the cash received in advance from customer and transfer of asset from customer in respect of services which are yet to be provided. Such amounts are recorded as liabilities in the statements of financial position and are only recognised in the statements of profit or loss and other comprehensive income upon the rendering of services to customers. Notes To The Financial Statements 31 December 2017 (cont’d)