MY E.G. SERVICES BERHAD Registration No. 200001003034 (505639-K) 178 NOTES TO THE FINANCIAL STATEMENTS ʹˢ˥ ˧˛˘ Ѓˡ˔ˡ˖˜˔˟ ˬ˘˔˥ ˘ˡ˗˘˗ ʦʤ ʷ˘˖˘ˠ˕˘˥ ʥʣʥʤ (CONT’D) 4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 4.21 REVENUE FROM CONTRACTS WITH CUSTOMERS (CONT’D) (f) Income from Ijarah Financing Ijarah This represents a lease contract that transfers the ownership of an asset to another party for a specified period in exchange for a rental. Effective transfer of the legal title is a consequent to the conclusion of the lease arrangement that can be in the form of a sale or gift of the asset to the lessee. Al-Ijarah Thumma al-Bai’ (“AITAB”) is a form of Ijarah lease contracts where the sale of asset to the lessee is executed at the completion of the lease period. Income from an Ijarah lease contract is recognised on effective profit rate basis over the period of the contract based on the principal amounts outstanding. 4.22 REVENUE FROM OTHER SOURCES AND OTHER OPERATING INCOME Interest Income Interest income is recognised on an accrual basis using the effective interest method. 4.23 DEFERRED REVENUE The deferred revenue primarily relate to advance considerations received from customers for the rental of devices and advanced billings for other maintenance, advertising, and marketing services of which the revenue will be recognised over the remaining contract term of the specific contract it relates to. 4.24 OPERATING SEGMENTS An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. An operating segment’s operating results are reviewed regularly by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. 4.25 EARNINGS PER ORDINARY SHARE Basic earnings per ordinary share is calculated by dividing the consolidated profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the reporting period, adjusted for own shares held. Diluted earnings per ordinary share is determined by adjusting the consolidated profit or loss attributable to ordinary shareholders of the Company and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinary shares. 4.26 JOINT ARRANGEMENTS Joint arrangements are arrangements of which the Group has joint control, established by contracts requiring unanimous consent for decisions about the activities that significantly affect the arrangements returns. Investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations of each investor. The Group has assessed the nature of its joint arrangements and determined them to be joint ventures. Joint Ventures A joint venture is a joint arrangement whereby the Group has rights only to the net assets of the arrangement.
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