Notes to the Financial Statements for the Financial Year Ended 30 September 2024 Sustaining Lives, Empowering Communities Governance That Inspires Confidence Financial Insights Through Numbers Empowering Ownership PG. 189 3. MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D) (e) Revenue recognition (Cont’d) (i) 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, based on costinput method 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). (ii) Sales of completed properties Revenue from sales 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. (iii) Construction contracts Revenue from rendering of services relating to construction contracts is recognised over time, based on cost-input method and efforts or inputs to the satisfaction of the performance obligation. (iv) Sales of goods Revenue from sales 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) Services Revenue from services is recognised as and when services are rendered. (vi) Rental income Rental income is recognised on a straight-line basis over the lease terms. (vii) Interest income Interest income is recognised on an accrual basis using the effective interest method. Interest income from term loan is recognised on an accrual basis and calculated on a monthly rest basis.
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