2. SIGNIFICANT ACCOUNTING POLICIES (CONTD.) 2.5 Significant accounting judgements and estimates (contd.) (b) Key sources of estimation uncertainty (contd.) (iv) Allowance for ECLs of trade receivables and contract assets The Group considers factors such as the probability of insolvency or significant financial difficulties of the debtor and default or significant delay in payments in calculating ECLs for trade receivables and contract assets. The amount and timing of future cash flows are then estimated based on historical credit loss experience for assets with similar credit risk characteristics and adjusted with forward-looking information such as forecast economic conditions. The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions. The Group’s historical credit loss experience and forecast of economic conditions may also not be representative of customer’s actual default in the future. The information about the ECLs on the Group’s trade receivables and contract assets is disclosed in Note 22 and Note 23 respectively. (v) Income taxes Significant estimation is involved in determining the provision for income taxes. There are certain transactions and computations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises liabilities for expected tax issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recognised, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. (vi) Deferred tax assets Deferred tax assets are recognised for all unutilised tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgment is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and level of future taxable profits together with future tax planning strategies. The deferred tax assets amounting to RM12.5 million (2021: RM8.1 million) are mainly related to subsidiaries of which management is confident that it would be probable for the related subsidiaries to generate future taxable profits. If the Group was able to recognise all unrecognised deferred tax assets, profit and equity would have increased by RM67.4 million (2021: RM69.4 million). Further details are disclosed in Note 24. (vii) Fair value of investment properties The Group carries its investment properties at fair value, with changes in fair value being recognised in profit or loss. The Group engaged independent professional valuers to perform value on its investment properties as at 31 December 2022. The valuation methodology commonly used is the comparison method which is based on comparable historical transactions adjusted for specific market factors such as location, size, condition, accessibility and design of the respective properties. The details of the investment properties are disclosed in Note 14. 3. REVENUE Group Company 2022 RM’000 2021 RM’000 2022 RM’000 2021 RM’000 Revenue from contracts with customers (a) Asset consultancy 99,520 82,475 – – Healthcare support 1,487,871 1,432,534 – – Infrastructure services 768,997 594,405 – – Property and facility solutions 163,766 162,974 – – Others 3,475 20,034 – – Management fees – – 22,748 82,458 2,523,629 2,292,422 22,748 82,458 Revenue from other sources Dividend income from subsidiaries – – 59,186 107,448 Total revenue 2,523,629 2,292,422 81,934 189,906 (a) Revenue from contracts with customers are recognised: – At a point in time 153,756 72,856 – – – Over time 2,369,873 2,219,566 22,748 82,458 2,523,629 2,292,422 22,748 82,458 (b) Geographical markets Malaysia 1,567,649 1,374,803 81,934 189,906 United Arab Emirates 75,057 78,697 – – Indonesia 12,092 28,237 – – Singapore 401,867 381,221 – – Taiwan 466,964 429,464 – – 2,523,629 2,292,422 81,934 189,906 The transaction price allocated to the remaining performance obligations (unsatisfied or partially unsatisfied) as at 31 December 2022 due within one year is RM1.7 billion (2021: RM1.5 billion) and due more than one year is RM4.6 billion (2021: RM5.6 billion). These relate to performance obligations from long-term service contracts that is to be satisfied within 1 to 16 years (2021: within 1 to 17 years). p.302 p.303 UEM EDGENTA BERHAD INTEGRATED ANNUAL REPORT 2022 1 2 3 4 5 6 7 8 9 FINANCIAL STATEMENTS Notes to the financial statements For the year ended 31 December 2022 Notes to the financial statements For the year ended 31 December 2022
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