200901023978 (867077-X) Kimlun Corporation Berhad (Incorporated in Malaysia) 2. Summary of significant accounting policies (cont'd) 2.20 Revenue from contracts with customers (i) (ii) (iii) (iv) (v) Recognise revenue when (or as) the Group satisfies a performance obligation. (i) (ii) (iii) Create or enhance an asset that the customer controls as the asset is created or enhanced; or Provide benefits that the customer simultaneously receives and consumes as the Company performs. Identify contract with a customer. A contract is defined as an agreement between two or more parties that creates enforceable rights and obligations and sets out the criteria that must be met. Identify performance obligations in the contract. A performance obligation is a promise in a contract with a customer to transfer a good or service to the customer. Determine the transaction price. The transaction price is the amount of consideration in a contract to which the Group expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties. Allocate the transaction price to the performance obligations in the contract. For a contract that has more than one performance obligation, the Group allocates the transaction price to each performance obligation in an amount that depicts the amount of consideration to which the Group expects to be entitled in exchange for satisfying each performance obligation. The Group satisfies a performance obligation and recognise revenue over time if the Group's performance: Do not create an asset with an alternative use to the Group and have an enforceable right to payment for performance completed to-date; or The Group recognises revenue from contracts with customers based on the five-step model as set out below: - 45 - NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022 Annual Report 2022 110
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