INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF KIMLUN CORPORATION BERHAD (Incorporated in Malaysia) Registration No: 200901023978 (867077-X) Key Audit Matters Reasonableness of revenue recognition arising from contracts with customers Refer to Notes 2.20, 3.2 (b) and 4 to the financial statements Key Audit Matter How our audit addressed the Key Audit Matter • construction • • manufacture of concrete products • property development • • • interpreting of contract terms and conditions; • • Pursuant to MFRS 15, revenue may be recognised at a point in time or progressively over time and judgements required to assess the performance obligations and revenue recognition. Judgements impacting the revenue recognition are as follow:- assessing and identifying the performance obligations; assessing the computation of revenue recognition. Evaluating whether the performance obligations are satisfied at point in time or over time; and Assessing the revenue recognised are in accordance with MFRS 15 “Revenue with Contract Customers”. Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the Group and of the Company for the current financial year. These matters were addressed in the context of our audit of the financial statements of the Group and of the Company as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report. The Group’s revenue is principally derived from the following businesses: To address this risk, our audit procedures involved the following: Reviewing the contract terms and identifying performance obligations stipulated in the contracts, on sample basis; - 9 - INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF KIMLUN CORPORATION BERHAD (INCORPORATED IN MALAYSIA) Annual Report 2022 74
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