My EG Services Berhad Annual Report 2019

ANNUAL REPORT 2019 131 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019 (CONT’D) FINANCIAL STATEMENTS 5. SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 5.21 REVENUE FROM CONTRACTS WITH CUSTOMERS (cont’d) (b) Rendering of Services Revenue from providing services is recognised over time in the period in which the services are rendered. For fixed-price contracts, revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided because the customer receives and uses the benefits simultaneously. As a practical expedient, the Group recognises revenue on a straight-line method over the period of service. Customers are invoiced on a monthly basis and consideration is payable when invoiced. (c) Interest Income Interest income is recognised on an accrual basis using the effective interest method. (d) Dividend Income Dividend income from investment is recognised when the right to receive dividend payment is established. (e) Rental Income Rental income from investment properties is accounted for on a straight-line method over the lease term. 5.22 DEFERRED REVENUE The deferred revenue primarily relate to advance considerations received from customers for the rental of devices and advanced billings for other maintenance services of which the revenue will be recognised over the remaining contract term of the specific contract it relates to. 5.23 OPERATING SEGMENTS An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. An operating segment’s operating results are reviewed regularly by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. 5.24 EARNINGS PER ORDINARY SHARE Basic earnings per ordinary share is calculated by dividing the consolidated profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the reporting period, adjusted for own shares held. Diluted earnings per ordinary share is determined by adjusting the consolidated profit or loss attributable to ordinary shareholders of the Company and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinary shares.