Serba Dinamik Annual Report 2019

286 2019 ANNUAL REPORT FINANCIAL STATEMENTS SERBA DINAMIK HOLDINGS BERHAD 21. REVENUE AND COST OF CONTRACT WITH CUSTOMERS (CONTINUED) 21.2 Nature of goods and services Nature of goods or services Timing of recognition or method used to recognise revenue Significant payment terms Variable element in consideration Warranty O&M Revenue from O&M services is derived from provision of manpower services and supply of materials. For manpower services, the revenue is recognised over the period in which the services are rendered. Revenue from supply of materials is recognised at point in time when the customer accepts the delivery of the goods. Credit period of 90 days from invoice date. Not applicable. Generally, the warranty on the maintenance service covers a period of 3 to 12 months after the services have been satisfactorily performed. EPCC - contract revenue Revenue is recognised overtime using the cost incurred method. Based on agreed milestones. There would be liquidated and ascertained damages for late delivery. Defect liability period of 12 to 24 months is given to the customers. EPCC - others Revenue fromother EPCC services is derived from provision of manpower services and supply of materials. For manpower services, the revenue is recognised over the period in which the services are rendered. Revenue from supply of materials is recognised at point in time when the customer accepts the delivery of the goods. Credit period of 90 days from invoice date. Not applicable. Not applicable. Others Revenue is recognised over-time when customer receives benefits as entity performs. Credit period of 90 days from invoice date. Not applicable. Not applicable. 21.3 Transaction price allocated to the remaining performance obligations The following table shows revenue from performance obligations that are unfulfilled (or partially unfulfilled) at the reporting date. The disclosure is only providing information for contracts that have a duration of more than one year. Group 2020 2021 2022 2023 Total RM’000 RM’000 RM’000 RM’000 RM’000 EPCC 1,288,243 763,418 112,258 8,513 2,172,432 ========= ======== ======== ======= ========= N O T E S T O T H E F I N A N C I A L S TAT E M E N T S