200901023978 (867077-X) Kimlun Corporation Berhad (Incorporated in Malaysia) 2. Summary of material accounting policy information (cont'd) 2.11 Revenue from contracts with customers (cont'd) (c) Sales of development properties under construction (cont'd) (d) Sales of completed development properties (e) Interest income (f) Rental income Rental income is recognised on accrual basis. (g) Dividend income Interest income is recognised on a time proportion basis that reflects the effective yield on the asset. If control of the asset is transferred over time, revenue is recognised over the period of the contract by reference to the progress towards complete satisfaction of that performance obligation. Otherwise, revenue is recognised at a point in time when the customer obtains control of the asset. The Group recognises revenue over time using the input method, which is based on the actual cost incurred to date on the development properties as compared to the total budgeted cost for the respective development properties. Any expected loss on a development project, including costs to be incurred over the defects liability period, is recognised as an expense immediately. Development properties cost not recognised as an expense are recognised as an asset, which is measured at the lower of cost and net realisable value. The excess of revenue recognised in profit or loss over billings to purchasers is classified as accrued billings within trade receivables and the excess of billings to purchasers over revenue recognised in profit or loss is classified as progress billings within trade payables. Revenue relating to sale of completed development properties is recognised at the point in time when the control of the property has been transferred to the purchaser, being when vacant possession of the property has been delivered to the customer and it is probable that the Group will collect the consideration to which it will be entitled to in exchange for the asset sold. Dividend income is recognised when the Group's right to receive payment is established. - 32 - NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 Kimlun Corporation Berhad 102
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