5 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (continued) Impairment of non-financial assets The Group and Company assess whether there is any indication that non-financial assets are impaired at the end of each reporting period and tests non-financial assets for impairment if such indication exists. Impairment is measured by comparing the carrying amount of a cash generating unit with its recoverable amount. The recoverable amount is measured at the higher of the fair value less costs to sell for that asset and its value in use. The value in use is the net present value of the projected future cash flows derived from that asset discounted at an appropriate discount rate. Projected future cash flows are calculated based on historical and industry trends, general market and economic conditions and other available information. Changes to any of these assumptions would affect the determination of value in use. Refer to Notes 17, 18 and 19 to the financial statements for the details of the impairment assessment carried out by management on the Group’s property, plant and equipment, ROU assets and intangible assets. 6 REVENUE – CONTINUING OPERATIONS The Group and Company derive the following types of revenue: Group Company 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000 Revenue from contract with customers 2,259,698 2,184,463 13,637 14,102 Revenue from other sources - - 240,942 112,983 2,259,698 2,184,463 254,579 127,085 Disaggregation of revenue from contracts with customers: Group Company 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000 Revenue from contract with customers Management fee income - - 13,637 14,102 Sales of goods (refined sugar and molasses) 2,252,740 2,184,051 - - Rendering of services (transportation services) 6,958 412 - - 2,259,698 2,184,463 13,637 14,102 Revenue from other sources Interest income - - 54,717 38,108 Dividend income - - 186,000 75,000 Others - - 225 (125) - - 240,942 112,983 2,259,698 2,184,463 254,579 127,085 Timing of revenue recognition - at a point in time 2,252,740 2,184,051 - - - over time 6,958 412 13,637 14,102 2,259,698 2,184,463 13,637 14,102 NOTESTOTHE FINANCIAL STATEMENTS FORTHE FINANCIALYEAR ENDED 31 DECEMBER 2021 WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 318
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