Financial Statements Financial Statements Press Metal Aluminium Holdings Berhad 260 261 Integrated Annual Report 2023 Notes to the Financial Statements Notes to the Financial Statements 19. REVENUE (CONT’D) 19.1 Disaggregation of revenue (cont’d) Group Reportable segments Smelting and extrusion Trading Refinery All other segments Total 2023 RM’000 2022 RM’000 2023 RM’000 2022 RM’000 2023 RM’000 2022 RM’000 2023 RM’000 2022 RM’000 2023 RM’000 2022 RM’000 Primary geographical markets Malaysia 938,551 1,006,535 166,868 258,731 - - 1,106 9,149 1,106,525 1,274,415 Asia 6,478,507 7,622,713 75 77 321,740 372,410 46 13,660 6,800,368 8,008,860 Oceania 76,971 89,872 125,390 127,428 - - - - 202,361 217,300 Europe 5,093,208 5,293,079 341,940 442,718 - - - - 5,435,148 5,735,797 America 40,041 8,556 212,601 422,948 - - - - 252,642 431,504 Africa 7,663 15,065 - - - - - - 7,663 15,065 12,634,941 14,035,820 846,874 1,251,902 321,740 372,410 1,152 22,809 13,804,707 15,682,941 Major products and services lines Smelting aluminium products 11,596,303 12,995,855 - - - - - - 11,596,303 12,995,855 Extrusion aluminium products 1,038,638 1,039,965 846,874 1,251,902 - - - - 1,885,512 2,291,867 Alumina products - - - - 321,740 372,410 - - 321,740 372,410 Contracting and fabrication - - - - - - 1,106 9,149 1,106 9,149 Others - - - - - - 46 13,660 46 13,660 12,634,941 14,035,820 846,874 1,251,902 321,740 372,410 1,152 22,809 13,804,707 15,682,941 Timing and recognition At a point in time 12,634,941 14,035,820 846,874 1,251,902 321,740 372,410 46 13,660 13,803,601 15,673,792 Over time - - - - - - 1,106 9,149 1,106 9,149 12,634,941 14,035,820 846,874 1,251,902 321,740 372,410 1,152 22,809 13,804,707 15,682,941 19. REVENUE (CONT’D) 19.2 Nature of goods and services The following information reflects the typical transactions of the Group: Nature of goods or services Timing of recognition or method used to recognise revenue Significant payment terms Variable element in consideration Obligation for returns or refunds Warranty Smelting aluminium products Revenue is recognised when the goods are shipped on board evidenced by bill of lading. Credit period of 0-30 days from invoice date. Not applicable. The Group allows returns only for exchange with new goods (i.e. no cash refunds are offered). Not applicable. Extrusion aluminium products Revenue is recognised when the goods are delivered and accepted by the customers at their premises or shipped on board evidenced by bill of lading. Credit period of 90 days from invoice date. Not applicable. The Group allows returns only for exchange with new goods (i.e. no cash refunds are offered). Not applicable. Alumina products Revenue is recognised when the goods are shipped on board evidenced by bill of lading. Credit period of 7 days from invoice date. Not applicable. Not applicable. Not applicable. Contracting and fabrication Revenue is recognised over time using the cost incurred method. Based on agreed milestones, certified by architects. Not applicable. Not applicable. Generally, defect liability period of 2 years is given to the customer. 19.3 Transaction price allocated to the remaining performance obligations The Group applies the following practical expedients: • exemption on disclosure of information on remaining performance obligations that have original expected durations of one year or less. • exemption not to adjust the promised amount of consideration for the effects of a significant financing component when the period between the transfer of a promised good or service to a customer and when the customer pays for that good or service is one year or less. 19.4 Judgements and assumptions arising from revenue recognition The Group applied the following judgements and assumptions that affect the determination of the amount and timing of revenue recognised from contracts with customers: • For smelting aluminium, extrusion aluminium and alumina products, control of the goods is transferred to the customers when the goods are shipped on board evidenced by bill of lading. The Group estimates that the revenue from the additional performance obligation, arising from shipping and handling activities provided to be recognised over time, is immaterial for separate recognition from the sale of products.
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