Kimlun Corporation Berhad Annual Report 2019

Annual Report 2019 Kimlun Corporation Berhad NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2019 (cont’d) 105 2. Summary of significant accounting policies (cont'd) 2.22 Revenue from contracts with customers (cont'd) (iv) (v) (i) (ii) (iii) Revenue is measured at the fair value of consideration received or receivable. (a) Construction contracts (b) Sale of goods Provide benefits that the customer simultaneously receives and consumes as the Company performs. Do not create an asset with an alternative use to the Group and have an enforceable right to payment for performance completed to-date; or Recognise revenue when (or as) the Group satisfies a performance obligation. The Group contracts with its customers for the sales of goods. Revenue from sale of goods is recognised at the point in time when control of the asset is transferred to the customer, generally upon the transfer of significant risk and rewards of ownership of the goods to the customer. Revenue is not recognised to the extent where there are significant uncertainties regarding recovery of the consideration due, associated costs or the possible return of goods. Create or enhance an asset that the customer controls as the asset is created or enhanced; or The Group contracts with its customers for construction services. Revenue from construction contracts is recognised over time using the input method, which is based on the actual cost incurred to date on the construction project as compared to the total budgeted cost for the respective construction project. For performance obligations where any one of the above conditions is not met, revenue is recognised at the point in time at which the performance obligation is satisfied. Allocate the transaction price to the performance obligations in the contract. For a contract that has more than one performance obligation, the Group allocates the transaction price to each performance obligation in an amount that depicts the amount of consideration to which the Group expects to be entitled in exchange for satisfying each performance obligation. The Group satisfies a performance obligation and recognise revenue over time if the Group's performance: