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113
Maxis Berhad
Annual Report 2014
Notes to the
Financial Statements
31 December 2014
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(u) Revenue recognition (continued)
(i) Telecommunications revenue (continued)
Revenue from mobile prepaid services comprises sales of starter packs and prepaid top-up tickets. Revenue from sales of
starter packs is recognised at the point of sale to third parties while the revenue from the preloaded talk time within the pack
is recognised when services are rendered. Revenue from sales of prepaid top-up tickets is recognised when services are
rendered. The credits on preloaded talk time within the starter packs and prepaid top-up tickets can be deferred up to the
point of customer churn or upon expiry, after which such amounts are recognised as revenue.
Unutilised credits of prepaid top-up tickets sold to customers and distributors and unutilised airtime on certain postpaid rate
plans which have been deferred as described above are recognised as deferred income.
Revenues from the provision of network facilities, public switched services, Internet services and Internet application services
are recognised at the time of customer usage and when services are rendered. Service discounts and incentives are accounted
as a reduction of revenue when granted.
Revenue earned from carriers for international gateway services is recognised at the time the calls occur and when services
are rendered.
Revenue from the sale of devices is recognised upon the transfer of significant risks and rewards of ownership of the goods
to the customer which generally coincides with delivery and acceptance of the goods sold.
Where the Group’s role in a transaction is that of a principal, revenue is recognised on a gross basis. This requires revenue to
comprise the gross value of the transaction billed to the customer, after trade discounts, with any related expenditure charged
as an operating cost. Where the Group’s role in a transaction is that of an agent, revenue is recognised on a net basis and
represents the margin earned.
(ii) Dividend income
Dividend income is recognised when the Group’s and the Company’s right to receive payment is established.
(iii) Interest income
Interest income is recognised on a time proportion basis, taking into account the principal outstanding and the effective
interest rate over the period to maturity, when it is determined that such income will accrue to the Group and the Company.
(v) Government grants
As a Universal Service Provider (“USP”), the Group is entitled to claim certain qualified expenses from the relevant authorities in
relation to USP projects. The claim qualifies as a government grant and is recognised at its fair value where there is reasonable
assurance that the grant will be received and the Group will comply with all the attached conditions.
