NOTES TO THE FINANCIAL STATEMENTS For the Financial Year Ended 31 December 2023 (cont’d) 2. BASIS OF PREPARATION (CONT’D) (c) Significant accounting judgements, estimates and assumptions (cont’d) Judgements (cont’d) Satisfaction of performance obligations in relation to contracts with customers The Group is required to assess each of its contracts with customers to determine whether performance obligations are satisfied over time or at a point in time in order to determine the appropriate method for recognising revenue. This assessment was made based on the terms and conditions of the contracts, and the provisions of relevant laws and regulations: The Group recognises revenue over time in the following circumstances: (a) the customer simultaneously receives and consumes the benefits provided by the Group’s performance as the Group performs; (b) the Group does not create an asset with an alternative use to the Group and has an enforceable right to payment for performance completed to date; and (c) the Group’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced. Where the above criteria are not met, revenue is recognised at a point in time. Where revenue is recognised at a point of time, the Group assesses each contract with customers to determine when the performance obligation of the Group under the contract is satisfied. Digital assets The Group has considered its position on the accounting for digital assets for the financial year and has determined that the Group’s digital assets fall into 2 categories: (i) Inventory method (historical method used by the Group); and (ii) Intangible asset method (the method noted by the International Accounting Standard Board in its most recent deliberations). The Group notes that under the 2 methods noted above, the treatment continues to measure digital assets at fair value (unless otherwise disclosed and provided certain conditions are met) under the respective accounting standards. Fair value of digital assets Digital assets (including Ethereum, Bitcoin, Tether USDt and other stable coins) are measured at fair value using the quoted price in United States Dollar (“USD”) from a number of different sources at closing Coordinated Universal Time. The Group considers this fair value to be a Level 1 input under the MFRS 13 Fair Value Measurement fair value hierarchy as the price on the quoted price (unadjusted) in an active market for identical assets. The Group uses a number of exchanges in order to provide the Group with appropriate size and liquidity to provide reliable evidence of fair value for the size and volume of transactions that are reasonably contemplated by the Group. ANNUAL REPORT 2023 185 p g (a) the customer simultaneously receives and consumes the benefits provided by the Group’s (b) the Group does not create an asset with an alternative use to the Group and has an enforceable right (c) the Group’s performance creates or enhances an asset that the customer controls as the asset is (ii) Intangible asset method (the method noted by the International Accounting Standard Board in its FINANCIAL STATEMENTS
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