193 FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS ʹˢ˥ ˧˛˘ Ѓˡ˔ˡ˖˜˔˟ ˬ˘˔˥ ˘ˡ˗˘˗ ʦʤ ʷ˘˖˘ˠ˕˘˥ ʥʣʥʧ (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. Classification of digital assets The Group has assessed the appropriate accounting treatment for its digital assets during the financial year and has concluded that these assets are to be classified as intangible assets. Management determined that the digital assets do not meet the definition of a financial instrument under MFRS 132, as they do not confer a contractual right to receive cash or another financial asset. Furthermore, classification as inventory under MFRS 102 is not appropriate, as the digital assets are not held for sale in the ordinary course of business. The Group holds these digital assets for long-term investment purposes. Based on management’s assessment, the digital assets meet the definition of intangible assets under MFRS 138, as they are identifiable, lack physical substance, are within the control of the Group, and are expected to generate future economic benefits.
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