ENRA Group Berhad Annual Report 2021

FINANCIAL STATEMENTS & OTHERS Annual Report 2021 | ENRA Group Berhad 155 NOTES TO THE FINANCIAL STATEMENTS 31 MARCH 2021 26. REVENUE (cont’d) (c) Revenue from property development and construction contracts (Cont’d) If control of the asset transfers over time, revenue is recognised over the period of the contract using the input method by reference to the cost incurred relative to the total expected cost for satisfaction of that performance obligation. Otherwise, revenue is recognised at a point in time when the customer obtains control of the asset. Significant judgement is required in determining performance obligations, transaction price allocation and costs in applying the input method to recognise revenue over time. The Group identifies performance obligations that are distinct and material, which is judgmental in the context of contract. Transaction prices were determined based on estimated margins prior to its allocation to the identified performance obligation. The Group also estimated total contract costs in applying the input method to recognise revenue over time. (d) Leasing Lease income from operating lease is accounted for on a straight line basis over the lease term of an ongoing lease. While, lease income from finance lease is accounted for on a straight line basis over the lease term of an ongoing lease and subsequently transfer the ownership of the asset to the lessee. (e) Sale of completed properties The Group recognises sales at a point in time for the sale of completed properties, when the control of the properties has been transferred to the purchasers, being when the properties have been completed and delivered to the customers and it is probable that the Group will collect the considerations to which it would be entitled to in exchange for the assets sold. There is no significant financing component in the revenue arising from sale of completed properties as the sales are made on the normal credit terms not exceeding twelve months. 27. COST OF SALES Group Company 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000 Completed properties – 49,391 – 3,186 Property development cost 1,397 – – – Finished goods 40,603 85,914 – – Contract cost – 1,189 – – Leasing 18,461 24,777 – – Services rendered - energy 16,994 21,448 – – 77,455 182,719 – 3,186