Sasbadi Annual Report 2021

110 SASBADI HOLDINGS BERHAD FINANCIAL STATEMENTS (continued) 110 21. REVENUE (continued) Group Company 2021 2020 2021 2020 R M’ 000 R M’ 000 R M’ 000 R M’ 000 Timing and recognition for revenue from contracts with customers At a point in time 59,639 59,978 - - Over time 3,263 2,836 - - 62,902 62,814 - - (a) Sale of printed books, distribution of applied learning products and trading of paper is recognised at a point in time when the goods are delivered and accepted by the customers at their premises. (b) Sale of online/digital educational material is recognised over time as the customer simultaneously receives and consumes the benefits provided as the Group performs. (c) Some contracts for the sales of printed books, distribution of applied learning products and trading of paper and online/digital educational material provide customers with a right of return the goods within a specified period. Under MFRS 15, the consideration received from the customer is variable because the contract allows the customer to return the products. To account for the transfer of products with a right of return, the Group recognises all of the following: (i) revenue for the transferred products in the amount of consideration to which the entity expects to be entitled (therefore, revenue would not be recognised for the products expected to be returned); (ii) a refund liability; and (iii) an asset (and corresponding adjustment to cost of sales) for its right to recover products from customers on settling the refund liability. (d) Dividend income is recognised when the shareholder ’ s right to receive payment is established. (e) There is no significant financing component in the revenue arising as the sales and services are made on the normal credit terms not exceeding twelve (12) months. 22. FINANCE COSTS Group 2021 2020 R M’ 000 R M’ 000 Interest expense of financial liabilities that are not at fair value through profit or loss 1,529 2,186 93 94 Interest expense on lease liabilities 1,623 2,279 Finance costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognised in profit or loss using the effective interest method.