Sasbadi Annual Report 2019

PAGE 145 ANNUAL REPORT 2019 FINANCIAL STATEMENTS (continued) 30. Significant changes in accounting policies (continued) 30.3 Accounting for revenue The following are the changes in revenue recognition from the adoption of MFRS 15: Type of revenue Previous year’s revenue recognition Current year’s revenue recognition Sale of printed books, distribution of applied learning products and trading of paper The Group previously recognised revenue when the goods were delivered to the customer’s premises, which was taken to be the point in time at which the customer accepted the goods and the related risks and rewards of ownership transferred. Revenue was recognised at the point provided that the revenue and costs could be measured reliably, the recovery of the consideration was probable and there was no continuing managerial involvement with the goods. Revenue is recognised at a point in time when the Group transfers control over a product or service to the customer. The goods are transferred when (or as) the customer obtains control of the asset. A provision for sales returns was recognised based on the estimated liabilities arising from the returns of goods sold by the customers. Where revenue is not recognised for expected returns, it will be presented as a refund liability. In addition, the right to recover the returned goods is presented as part of inventory. Early settlement rebates was recognised when the amount was incurred as and when customers made payment. Early settlement rebates is recognised based on estimate at the time the revenue is recognised.