NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024 3. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS (CONT’D.) 3.1 Key sources of estimation uncertainty (cont’d.) (f) Inventories Inventories are stated at the lower of cost and net realisable value. Significant judgement is required in arriving at the net realisable value, particularly the estimated selling price of inventories in the ordinary course of the business. The Group has considered all available information, including but not limited to property market conditions, locations of property inventories and target buyers. Details of inventories are disclosed in Note 16. 3.2 Judgement made in applying accounting policies In the process of applying the Group’s and the Company’s accounting policies, management has made the following judgements, apart from there involving estimations, which have the most significant effect on the amounts recognised in the financial statements: Classification between investment properties and property, plant and equipment The Group has developed certain criteria based on MFRS 140 in making judgement whether a property qualifies as an investment property. Investment property is a property held to earn rentals or for capital appreciation or both. Some properties comprise a portion that is held to earn rentals or for capital appreciation and another portion that is held for use in the production or supply of goods or services or for administrative purposes. If these portions could be sold separately (or leased out separately under a finance lease), the Group would account for the portions separately. If the portions could not be sold separately, the property is an investment property only if an insignificant portion is held for use in the production or supply of goods or services or for administrative purposes. Judgement is made on an individual property basis to determine whether ancillary services are so significant that a property does not qualify as investment property. 4. REVENUE Group Company 2024 2023 2024 2023 RM’000 RM’000 RM’000 RM’000 Revenue from contracts with customers 1,334,029 1,397,845 16,395 9,775 Revenue from other sources: - Rental and related income from investment properties 72,197 70,317 – – - Dividend income from subsidiaries (Note 36(a)) – – 23,507 7,419 - Others 1,345 24,949 – – 1,407,571 1,493,111 39,902 17,194 ANNUAL REPORT 2024 262
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