2. Summary of material accounting policies (cont'd.) 2.14 Revenue and other income recognition (cont'd.) (e) Recreational club operations Revenue from recreaঞonal club acঞviঞes including club membership fees and banqueঞng income are recognised when the services are rendered. The payment of the transacঞon price is due immediately upon delivery of the services. Recreaঞonal club membership fees which are received upfront are recognised on a straight-line basis over the tenure of the respecঞve memberships. (f) Educational services Revenue from educaঞonal services including tuiঞon fees, facility fees, and registraঞon and administraঞon fees are recognised over a period of ঞme when the services are rendered. (g) Interest income Interest income is recognised based on effecঞve interest rate. 2.15 Borrowing costs Borrowing costs directly aributable to the acquisiঞon, construcঞon or producঞon of qualifying assets, which are assets that necessarily take a substanঞal period of ঞme to get them ready for their intended use or sale, are capitalised as part of the cost of those assets, unঞl such ঞme as the assets are substanঞally ready for their intended use or sale. The amount of borrowing costs eligible for capitalisaঞon is determined based on actual interest incurred on borrowings made specifically for the purpose of obtaining a qualifying asset and less any investment income on the temporary investment of that borrowing. 2.16 Provisions Provisions are recognised when the Group has a present obligaঞon (legal or construcঞve) as a result of a past event, it is probable that an oulow of resources embodying economic benefits will be required to sele the obligaঞon and a reliable esঞmate can be made of the amount of the obligaঞon. When the Group expects a provision to be reimbursed, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. Provisions are reviewed at the end of each reporঞng period and adjusted to reflect the current best esঞmate. If it is no longer probable that an oulow of economic resources will be required to sele the obligaঞon, the provision is reversed. If the effect of the ঞme value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. When discounঞng is used, the increase in the provision due to the passage of ঞme is recognised as finance cost. notes to the financial statements 31 march 2025 (cont’d.) 172 MATRIX CONCEPTS HOLDINGS BERHAD INTEGRATED ANNUAL REPORT 2025 07 FINANCIAL STATEMENTS
RkJQdWJsaXNoZXIy NDgzMzc=