Frontken Berhad Annual Report 2018

61 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2018 3. SIGNIFICANT ACCOUNTING POLICIES (CONT’D) Critical Accounting Estimates And Judgements (Cont’d) Key Sources of Estimation Uncertainty (Cont’d) (vii) Write-down of Inventories ;N_RN`\ J[N VJMN YN[RXMRLJUUb Kb VJWJPNVNW] XW MJVJPNM XK\XUN]N JWM \UX` VX_RWP RW_NW]X[RN\ =QN\N [N_RN`\ [NZ^R[N S^MPNVNW] JWM N\]RVJ]N\ 9X\\RKUN LQJWPN\ RW ]QN\N N\]RVJ]N\ LX^UM [N\^U] RW [N_R\RXW\ ]X ]QN _JU^J]RXW XO RW_NW]X[RN\ =QN LJ[[bRWP JVX^W] XO RW_NW]X[RN\ J\ J] ]QN [NYX[]RWP MJ]N R\ MR\LUX\NM RW 7X]N ]X ]QN ࠰WJWLRJU \]J]NVNW]\ (viii) Impairment of Non-Trade Receivables =QN UX\\ JUUX`JWLN\ OX[ WXW ][JMN ࠰WJWLRJU J\\N]\ J[N KJ\NM XW J\\^VY]RXW\ JKX^] [R\T XO MNOJ^U] JWM NaYNL]NM UX\\ [J]N\ =QN 0[X^Y ^\N\ S^MPNVNW] RW VJTRWP ]QN\N J\\^VY]RXW\ JWM \NUNL]RWP JYY[XY[RJ]N RWY^]\ ]X ]QN RVYJR[VNW] LJUL^UJ]RXW KJ\NM XW ]QN YJ\] YJbVNW] ][NWM\ NaR\]RWP VJ[TN] LXWMR]RXW\ J\ `NUU J\ OX[`J[M UXXTRWP N\]RVJ]N\ J] ]QN NWM XO NJLQ [NYX[]RWP YN[RXM =QN LJ[[bRWP JVX^W]\ XO X]QN[ [NLNR_JKUN\ JWM JVX^W]\ X`RWP Kb RW]N[LXVYJWb J\ J] ]QN [NYX[]RWP MJ]N J[N MR\LUX\NM RW 7X]N\ JWM ! ]X ]QN ࠰WJWLRJU \]J]NVNW]\ Critical Judgements Made in Applying Accounting Policies Management believes that there are no instances of application of critical judgement in applying the Group’s accounting YXURLRN\ `QRLQ `RUU QJ_N J \RPWR࠰LJW] NOONL] XW ]QN JVX^W]\ [NLXPWR\NM RW ]QN ࠰WJWLRJU \]J]NVNW]\ X]QN[ ]QJW J\ MR\LUX\NM KNUX`# J ,UJ\\R࠰LJ]RXW XO 5NJ\NQXUM 5JWM =QN LUJ\\R࠰LJ]RXW XO UNJ\NQXUM UJWM J\ J ࠰WJWLN UNJ\N X[ JW XYN[J]RWP UNJ\N [NZ^R[N\ ]QN ^\N XO S^MPNVNW] RW MN]N[VRWRWP ]QN Na]NW] ]X `QRLQ [R\T\ JWM [N`J[M\ RWLRMNW]JU ]X R]\ X`WN[\QRY URN -N\YR]N ]QN OJL] ]QJ] ]QN[N `RUU be no transfer of ownership by the end of the lease term and that the lease term does not constitute the major YJ[] XO ]QN RWMN࠰WR]N NLXWXVRL URON XO ]QN UJWM VJWJPNVNW] LXW\RMN[NM ]QJ] ]QN Y[N\NW] _JU^N XO ]QN VRWRV^V UNJ\N YJbVNW]\ JYY[XaRVJ]NM ]X ]QN OJR[ _JU^N XO ]QN UJWM J] ]QN RWLNY]RXW XO ]QN UNJ\N *LLX[MRWPUb VJWJPNVNW] judged that the Group has acquired substantially all the risks and rewards incidental to the ownership of the land ]Q[X^PQ J ࠰WJWLN UNJ\N Operating Segments Operating segment is a component of the Group that engages in business activities from which it may earn revenues JWM RWL^[ NaYNW\N\ RWLU^MRWP [N_NW^N\ JWM NaYNW\N\ ]QJ] [NUJ]N ]X ][JW\JL]RXW\ `R]Q JWb XO ]QN 0[X^Y۴\ X]QN[ LXVYXWNW]\ *W XYN[J]RWP \NPVNW]۴\ XYN[J]RWP [N\^U]\ J[N [N_RN`NM [NP^UJ[Ub Kb ]QN LQRNO XYN[J]RWP MNLR\RXW VJTN[ ]X VJTN MNLR\RXW\ JKX^] [N\X^[LN\ ]X KN JUUXLJ]NM ]X ]QN \NPVNW] JWM J\\N\\ R]\ YN[OX[VJWLN JWM OX[ `QRLQ MR\L[N]N ࠰WJWLRJU RWOX[VJ]RXW R\ J_JRUJKUN Revenue from Contracts with Customers and Other Income (i) Revenue from contracts with customers Revenue from contracts with customers is recognised by reference to each distinct performance obligation in the LXW][JL] `R]Q L^\]XVN[ ;N_NW^N O[XV LXW][JL]\ `R]Q L^\]XVN[\ R\ VNJ\^[NM J] R]\ ][JW\JL]RXW Y[RLN KNRWP ]QN JVX^W] XO LXW\RMN[J]RXW `QRLQ ]QN 0[X^Y NaYNL]\ ]X KN NW]R]UNM RW NaLQJWPN OX[ ][JW\ON[[RWP Y[XVR\NM PXXM\ X[ \N[_RLN\ ]X J L^\]XVN[ WN] XO \JUN\ JWM \N[_RLN ]Ja [N]^[W\ [NKJ]N\ JWM MR\LX^W]\ =QN 0[X^Y [NLXPWR\N\ [N_NW^N `QNW X[ J\ R] ][JW\ON[\ LXW][XU X_N[ J Y[XM^L] X[ \N[_RLN ]X L^\]XVN[ *W J\\N] R\ ][JW\ON[[NM `QNW X[ J\ ]QN L^\]XVN[ XK]JRW\ LXW][XU XO ]QJ] J\\N] Notes To The Financial Statements (cont’d)