Wah Seong Corporation Berhad Annual Report 2018

3 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED) (b) Impairment of non-financial assets The Group assesses whether there is any indication that non-financial assets are impaired at the end of each reporting period. Impairment is measured by comparing the carrying amount of an asset with its recoverable amount. Recoverable amount is measured at the higher of the fair value less cost to sell for that asset and its value-in-use. The value-in-use is the net present value of the projected future cash flows to be derived from that asset. Projected future cash flows are calculated based on historical sector and industry trends, general market and economic conditions, changes in technology and other available information. Changes to any of these assumptions would affect the amount of impairment. Details of the carrying amount and the key assumptions applied in the impairment assessment of investments in associates and joint ventures are given in Note 8 and Note 9. There is no significant impairment or reversal of impairment in respect of other non-financial assets during the financial year. (c) Revenue recognised from customers on contracts Revenue is recognised when or as the control of the asset is transferred to the customers and, depending on the terms of the contract and the applicable laws governing the contract, control of the asset may transfer over time or at a point in time. If control of the asset transfers over time, revenue is recognised over the period of the contract by reference to the progress, based on the certified work-to-date. Significant judgement is required in the estimation of the progress based on the estimation of budget cost, the extent of contract costs incurred and the recoverability of the construction contracts. The Group evaluates the estimates made using past experience. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 WAH SEONG CORPORATION BERHAD 112