Sasbadi Annual Report 2019

PAGE 153 ANNUAL REPORT 2019 FINANCIAL STATEMENTS (continued) Key Audit Matters (continued) 4. Adoption of MFRS 15 , Revenue from Contracts with Customers Refer to Note 30 to the financial statements. The key audit matter How the matter was addressed in our audit MFRS 15, Revenue from Contracts with Customers became effective on 1 September 2018 for the Group. Arising from the adoption of MFRS 15, the Group was required to change accounting policies on revenue recognition. Consequently, new judgements were required to evaluate contracts with customers, in particular on the number of performance obligations, allocation of transaction price to each performance obligation and the determination of whether revenue for each contract is to be recognised over time or at a point in time. In addition, there were new disclosures made in the financial statements. The accounting policy change arising from the adoption of MFRS 15 is a key audit matter because it: x requires involvement of our more senior personnel to assess the evaluation of the contracts with customers performed by the Group; and, x requires us to exercise significant judgement to assess the timing of revenue recognition. We performed the following audit procedures, amongst others, around the adoption of MFRS 15: x We compared the accounting policies adopted with the requirements of MFRS 15; x We obtained an understanding of the basis of the key judgements made for the revenue recognition and compared them with the requirements of MFRS 15; x We evaluated the estimates made for revenue recognition by determining that inputs applied were not biased and these were reasonable and supportable; and, x We assessed the completeness, accuracy and appropriateness of disclosures in the financial statements as required by MFRS 15. We have determined that there is no key audit matter in the audit of the separate financial statements of the Company to communicate in our auditors’ report.