NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2024 (CONT’D) 4. MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D) 4.8 INVENTORIES (CONT’D) I nventories are stated at the lower of cost and net realisable value. Cost and net realisable value are determined as below (Cont’d):- (c) Completed Properties Held for Sale T he cost is determined by apportionment of the total development costs for that development project, attributable to the unsold properties. The cost of completed properties held for sale comprises cost associated with the acquisition of land, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. N et realisable value represents the estimated selling price less the estimated costs necessary in selling the property. (d) Club and Hotel Operating Supplies Cost is determined using first-in, first-out method and comprises food and beverage supplies. N et realisable value is the estimated selling price in the ordinary course of business, less the applicable variable selling expenses. 4.9 REVENUE FROM CONTRACTS WITH CUSTOMERS R evenue from contracts with customers is recognised by reference to each distinct performance obligation in the contract with customer. Revenue from contracts with customers is measured at its transaction price, being the amount of consideration which the Group expects to be entitled in exchange for transferring promised goods or services to a customer, net of sales and service tax, returns, rebates and discounts. T he Group recognises revenue when (or as) it transfers control over a product or service to customer. An asset is transferred when (or as) the customer obtains control of the asset. D epending 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 transfers control of a good or service at a point in time unless one of the following overtime criteria is met:- • The customer simultaneously receives and consumes the benefits provided as the Group performs. • The Group’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced. • The Group’s performance does not create an asset with an alternative use and the Group has an enforceable right to payment for performance completed to date. (a) Property Development Activities R evenue from property development is recognised progressively when property development services are rendered and such services do not create an asset with an alternative’s use to the Group, and the Group has a present right to payment for services rendered to date. The progress towards complete satisfaction of the performance obligation is measured based on a method that best depicts the Group’s performance in satisfying the performance obligation of the contract. This is determined by reference to the property development costs incurred up to the end of the reporting period as a percentage of total estimated costs for complete satisfaction of the contract. Otherwise, revenue is recognised at a point in time upon delivery of property and customer’s acceptance, and the Group has a present right to payment for the property sold. FINANCIAL STATEMENTS 163 INTEGRATED ANNUAL REPORT 2024
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