NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024 SECTION 4: FINANCIAL PERFORMANCE 160 2. BASIS OF PREPARATION (CONT’D) 2.7 Significant accounting estimates and judgements (cont’d) 2.7.1 Estimation uncertainties (cont’d) Information about significant judgements, estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses are discussed below (cont’d). Revenue recognition - Estimating stand-alone selling price – Points loyalty programme (cont’d) As points issued under the programme with the validity period of up to 1 to 2 years (2023: 1 to 2 years), estimates of the stand-alone selling price are subject to significant uncertainty. Any significant changes in customers’ redemption patterns will impact the estimated redemption rate. As at 31 December 2024, the estimated liability for unredeemed points was RM2,095,000 (2023: RM3,669,000). If the estimated redemption rate used had been higher by 1% than management’s estimate, the carrying amount of the estimated liability for unredeemed points as at 31 December 2024 would have been higher by RM80,000 (2023: RM82,000). Provisions for restoration costs Provisions for restoration costs are recognised when the Group has a present legal obligation from lease agreements for leased stores during the year. The Group estimated the present value of the dismantlement, removal and restoration costs of the leased stores upon termination of the lease agreement. At 31 December 2024, the carrying amount of provisions for restoration costs amounting to RM2,258,000 (2023: Nil). A 10% difference in the estimated costs to restore the leased areas would result in approximately RM226,000 (2023: Nil) variance in provisions for restoration costs. 2.7.2 Significant management judgement There are no significant judgments applied by the management in the accounting policies of the Group and of the Company that have a significant effect on the financial statements.
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