154 KIMLUN CORPORATION BERHAD • NOTES TO THE FINANCIAL STATEMENTS 200901023978 (867077-X) Kimlun Corporation Berhad (Incorporated in Malaysia) 2. Material accounting policy information (cont'd) 2.17 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 Dividend income is recognised when the Group's right to receive payment is established. 2.18 Contract cost assets (a) Incremental costs of obtaining a contract 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. The excess of revenue recognised in profit or loss over billings to purchasers is classified as accrued billings within contract assets and the excess of billings to purchasers over revenue recognised in profit or loss is classified as progress billings within contract liabilities. 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. The incremental costs of obtaining a contract with customers of the Group mainly relate to commission payable on sales of properties. Interest income is recognised on a time proportion basis that reflects the effective yield on the asset. - 34 -
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