Sasbadi Annual Report 2019

PAGE 146 SASBADI HOLDINGS BERHAD FINANCIAL STATEMENTS (continued) 30. Significant changes in accounting policies (continued) 30.3 Accounting for revenue (continued) Type of revenue Previous year’s revenue recognition Current year’s revenue recognition Sale of online/digital educational material 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 over time as the customer simultaneously receives and consumes the benefits provided as the Group performs. Performance bonus paid to its distributors was recognised in cost of sales when it was incurred. Performance bonus paid to its distributors are classified as personal sales bonus and group network sales bonus. Personal sales bonus is recognised as a reduction of transaction price. It will be capitalised as costs to obtain the contract and will be amortised over time, consistent with the recognition of revenue. Group network sales bonus is a consideration paid to distributors for the provision of distinct services and will be recognised in cost of sales as it is incurred.