Press Metal Aluminium Holdings Berhad SECTION 6 • FINANCIAL STATEMENTS 288 Notes to the Financial Statements 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. 19.3 Practical expedients applied for 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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