PRG Holdings Berhad Annual Report 2018

4. SIGNIFICANT ACCOUNTING POLICIES (continued) 4.19 Revenue and other income (continued) (c) Construction contracts Revenue from contract works are recognised over the period of the contracts by reference to the progress towards complete satisfaction of that performance obligations. Progress is determined on the proportion of construction contract costs incurred for work performed to date against total estimated construction contract costs where the outcome of the project can be estimated reliably. (d) Dividend income Dividend income is recognised when the right to receive payment is established. (e) Management fees Management fees are recognised when or as a performance obligation in the contract with customer is satisfied, i.e. when the “control” of the services underlying the particular performance obligation is transferred to the customer. (f) Interest income Interest income is recognised on a time proportion basis that reflects the effective yield on asset. (g) Rental income Rental income is accounted for on a straight line basis over the lease term of an ongoing lease. The aggregate cost of incentives provided to the lessee is recognised as a reduction of rental income over the lease term on a straight line basis. 4.20 (Loss)/Earnings per share (a) Basic Basic (loss)/earnings per ordinary share for the financial year is calculated by dividing the (loss)/profit for the financial year attributable to equity holders of the parent by the weighted average number of ordinary shares outstanding during the financial year. (b) Diluted Diluted (loss)/earnings per ordinary share for the financial year is calculated by dividing the (loss)/profit for the financial year attributable to equity holders of the parent by the weighted average number of ordinary shares outstanding during the financial year adjusted for the effects of dilutive potential ordinary shares. 4.21 Operating segments Operating segments are defined as components of the Group that: (a) engage in business activities from which it could earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the Group); (b) whose operating results are regularly reviewed by the chief operating decision maker of the Group in making decisions about resources to be allocated to the segment and assessing its performance; and (c) for which discrete financial information is available. An operating segment may engage in business activities for which it has yet to earn revenue. 2018 A N N U A L R E P O R T 96 notes to the financial statements 31 December 2018 (continued)