118 Annual Report 2022 SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 3. Revenue recognition (Cont’d) (e) Notes to the Financial Statements For the Financial Year Ended 30 September 2022 Revenue for performance obligation that is not satisfied over time is recognised at the point in time at which the customer obtains control of the promised goods or services. Development properties The Group recognises revenue from property development over time if it creates an asset with no alternative use to the Group and the Group has an enforceable right to payment for performance completed to date. Revenue is recognised over the period of the contract by reference to the progress towards complete satisfaction of that performance obligation. The progress towards complete satisfaction of the performance obligation is measured based on the Group's efforts or inputs to the satisfaction of the performance obligation (i.e. by reference to the property development costs incurred to date as a percentage of the estimated total costs of development of the contract). (i) Sale of completed properties Revenue from sale of completed properties is recognised at a point in time upon the finalisation of sale and purchase agreements and when the control of the properties has been passed to the customers. (ii) Sale of investment properties Revenue from sale of investment properties is measured at fair value of the consideration received or receivable. Revenue is recognised when the control of the ownership has been transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of investment properties can be estimated reliably, and there is no continuing management involvement with the properties. (iii) Construction contracts Revenue from rendering of services relating to construction contracts is recognised over time based on efforts or inputs to the satisfaction of the performance obligation. (iv) Sale of goods Revenue from sale of goods, crude palm oil and palm kernel is measured at fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates. Revenue is recognised by the Group at a point in time when control of the goods underlying the performance obligation is transferred to the buyers. (v)
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