2. Summary of material accounting policies (cont’d.) 2.13 Impairment of non-financial assets The Group assesses, at each reporঞng date, whether there is an indicaঞon that an asset may be impaired. If any indicaঞon exists, or when annual impairment tesঞng for an asset is required, the Group esঞmates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generaঞng unit’s (“CGU”) fair value less costs to sell and its value-in-use. Recoverable amount is determined for an individual asset unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is wrien down to its recoverable amount. In assessing value-in-use, the esঞmated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the ঞme value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transacঞons are taken into account. If no such transacঞons can be idenঞfied, an appropriate valuaঞon model is used. Where the carrying amount of an asset exceeds its recoverable amount, the asset is wrien down to its recoverable amount. Impairment losses recognised in respect of a CGU or groups of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to those units or groups of units and then, to reduce the carrying amount of the other assets in the units or groups of units on a pro-rata basis. Impairment losses are recognised in profit or loss except for assets that are previously revalued where the revaluaঞon was taken to other comprehensive income. In this case, the impairment is also recognised in other comprehensive income up to the amount of any previous revaluaঞon. An assessment is made at each reporঞng date to determine whether there is an indicaঞon that previously recognised impairment losses no longer exist or have decreased. If such indicaঞon exists, the recoverable amount of the asset or CGU is esঞmated. A previously recognised impairment loss is reversed only if there has been a change in the assumpঞons used to determine the asset’s recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciaঞon, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in profit or loss unless the asset is measured at its revalued amount, in which case the reversal is treated as a revaluaঞon increase. Impairment loss on goodwill is not reversed in a subsequent period. 2.14 Revenue and other income recognition Revenue is recognised when or as a performance obligaঞon in the contract with customer is saঞsfied, i.e. when the “control” of the goods or services underlying the parঞcular performance obligaঞon is transferred to the customer. The specific recogniঞon criteria described below must be met before revenue and other income is recognised: (a) Property development revenue Revenue from property development is recognised as and when the control of the asset is transferred to the customer and it is probable that the Group will collect the consideraঞon to which it will be enঞtled in exchange for the asset that will be transferred to the customer. Depending on the terms of the contract and the laws that apply to the contract, control of the asset may transfer over ঞme or at a point in ঞme. Control of the asset is transferred over ঞme if the Group’s performance does not create an asset with an alternaঞve use to the Group and the Group has an enforceable right to payment for performance completed to date. notes to the financial statements 31 march 2025 (cont’d.) 170 MATRIX CONCEPTS HOLDINGS BERHAD INTEGRATED ANNUAL REPORT 2025 07 FINANCIAL STATEMENTS
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