Frontken Corporation Berhad 200401012517 (651020-T) • ANNUAL REPORT 2022 91 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) 3. SIGNIFICANT ACCOUNTING POLICIES (CONT’D) Revenue from Contracts with Customers and Other Income (Cont’d) (i) Revenue from Contracts with Customers (Cont’d) Rendering of Services Revenue from services is recognised at a point in time in which the services have been rendered to a customer. Following the rendered of services, the Group has a present right to payment for the services rendered and the customer has obtained the remaining benefits from the services. (ii) Management Fee Management fee is recognised on an accrual basis. (iii) Interest Income Interest income is recognised on an accrual basis using the effective interest method. (iv) Dividend Income Dividend income from investment is recognised when the right to receive dividend payment is established. (v) Lease Income Lease income is recognised on an accrual basis over the lease term. Income Taxes (i) Current Tax Current tax assets and liabilities are expected amount of income tax recoverable or payable to the taxation authorities. Current taxes are measured using tax rates and tax laws that have been enacted or substantively enacted at the end of the reporting period and are recognised in profit or loss except to the extent that the tax relates to items recognised outside profit or loss (either in other comprehensive income or directly in equity). (ii) Deferred Tax Deferred tax is recognised using the liability method for all temporary differences other than those that arise from goodwill or from the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled, based on the tax rates that have been enacted or substantively enacted at the end of the reporting period. Deferred tax assets are recognised for all deductible temporary differences, unused tax losses and unused tax credits to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences, unused tax losses and unused tax credits can be utilised. The carrying amounts of deferred tax assets are reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that the related tax benefits will be realised.
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