2. Summary of material accounting policies (cont’d.) 2.14 Revenue and other income recognition (cont’d.) (a) Property development revenue (cont’d.) This is generally established when: (i) the promised properঞes are specifically idenঞfied by its plot, lot and parcel number and its aributes (such as its size and locaঞon) in the sale and purchase agreements and the aached layout plan and the purchasers could enforce its rights to the promised properঞes if the Group seeks to sell the unit to another purchaser. The contractual restricঞon on the Group’s ability to direct the promised property for another use is substanঞve and the promised properঞes sold to the purchasers do not have an alternaঞve use to the Group; and (ii) the Group has the right to payment for performance completed to date and is enঞtled to conঞnue to transfer to the customer the development units promised and has the rights to complete the construcঞon of the properঞes and enforce its rights to full payments. If control of the asset is transferred over ঞme, revenue is recognised over the period of the contract by reference to the progress towards complete saঞsfacঞon of that performance obligaঞon. Otherwise, revenue is recognised at a point in ঞme when the customer obtains control of the asset in accordance with Note 2.14(b). The Group recognises revenue over ঞme using the input method, which is based on the level of compleঞon in proporঞon of cost incurred to date against the expected total construcঞon costs. Contracts with customers may include mulঞple promises to customers and therefore accounted for as separate performance obligaঞons. In this case, the transacঞon price will be allocated to each performance obligaঞon based on the stand-alone selling prices. When these are not directly observable, they are esঞmated based on expected cost plus margin. (b) Sale of completed properties Revenue from the sales of completed properঞes is recognised upon delivery of properঞes where the control of the properঞes has been passed to the buyers. (c) Rendering of services Revenue is recognised in the accounঞng period in which the services are rendered and the customer receives and consumes the benefits provided by the Group, and the Group has a present right to payment for the services. (d) Hotel operations Hotel operaঞons generally consist of room rentals and food and beverage. Room rental revenue is accrued over ঞme on customer-occupied rooms. Revenue from the sales of food and beverage is recognised when the customer receives and consumes, and the Company has a present right to payment for, the food and beverage product. Hotel room rental and food and beverages revenue are recorded based on the published rates, net of discounts. notes to the financial statements 31 march 2025 (cont’d.) 171 MATRIX CONCEPTS HOLDINGS BERHAD INTEGRATED ANNUAL REPORT 2025 07 FINANCIAL STATEMENTS
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