DESTINI Annual Report 2018

2. Basis of Preparation (Cont’d) (a) Statement of compliance (Cont’d) Adoption of new and amended standards (Cont’d) (ii) MFRS 15 Revenue from Contracts from Customers MFRS 15 establishes a five-step model that will apply to recognition of revenue arising from contracts with customers and provide a more structured approach in measuring and recognising revenue. Revenue is recognised when a customer obtains control of a good or service, at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. With the adoption of MFRS 15, revenue is recognised by reference to each distinct performance obligation in the contract with customer. Transaction price is allocated to each performance obligation on the basis of the relative standalone selling prices of each distinct good or services promised in the contract. Depending on the substance of the contract, revenue is recognised when the performance obligation is satisfied, which may be at a point in time or over time. The Group and the Company using the modified retrospective method of adoption with the date of initial application of 1 January 2018. Accordingly, the comparative information was not restated and the cumulative effects of initial application of MFRS 15 were recognised as an adjustment to the opening balance of retained earnings as at 1 January 2018. The comparative information continued to be reported under the previous accounting policies governed under MFRS 118 and MFRS 111. In applying the modified retrospective method, the Group and the Company applied the following practical expedients: (a) for completed contracts, contracts that begin and end within the same annual reporting period were not restated; (b) for completed contracts that have variable consideration, transaction price at the date the contract was completed was used rather than estimating variable consideration amounts in the comparative reporting periods; and (c) for all reporting periods presented before the date of initial application, the amount of the transaction price allocated to the remaining performance obligation and an explanation of when the entity expects to recognise that amount as revenue is not disclosed. The adoption of MFRS 15 has no material financial impact other than the disclosures made in the financial statements. Impact arising from the adoption of MFRS 9 on the Group’s financial statements: As at 31.12.2017 MFRS 9 adjustments As at 1.1.2018 Group RM RM RM Trade receivables 340,629,119 (1,271,536) 339,357,583 Cash and bank balances 113,186,371 (1,271,536) 111,914,835 NOTES TO THE FINANCIAL STATEMENTS DESTINI BERHAD ANNUAL REPORT 2018 112