158 KIMLUN CORPORATION BERHAD • NOTES TO THE FINANCIAL STATEMENTS 200901023978 (867077-X) Kimlun Corporation Berhad (Incorporated in Malaysia) 3. Significant accounting judgements and estimates (cont'd) 3.2 Key sources of estimation uncertainty (cont'd) (e) Write down of land held for development The Group measures its land held for development at lower of cost or net realisable value. 4. Revenue (a) Revenue from contracts with customers 2025 2024 RM RM Types of goods and services Construction contracts 1,413,353,498 999,376,093 Sales of building materials 43,425,869 28,819,846 Sales of completed development properties 4,398,200 3,481,650 Sales of completed properties 2,078,496 - Sales of concrete products 197,370,966 171,245,520 Sales of development properties 209,093,711 4,470,036 Sale of land 55,000,000 - 1,924,720,740 1,207,393,145 Timing of revenue recognition Transferred over time 1,622,447,209 1,003,846,129 Transferred at a point in time 302,273,531 203,547,016 1,924,720,740 1,207,393,145 The net realisable values of land held for development are determined by valuations performed by independent registered valuers using the comparison method. Under the comparison method, the market value of a land parcel is estimated based on comparable transactions. This approach is based upon the principle of substitution under which a potential buyer would not pay more for the land than it would cost to buy a comparable substitute property. The land is valued by reference to transactions of similar land parcels in its surrounding area with adjustments made for differences in location, terrain, size and shape of the land, tenure, title restrictions, if any and other relevant characteristics. Group - 38 -
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