Yinson Annual Report 2019

149 Yinson Group Overview Strategy and Sustainability Governance Accountability Annual General Meeting 5. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED) (d) Useful life and residual value of vessels (continued) For the financial year ended 31 January 2019, the impact of the sensitivity resulting from a 5 years increase/decrease in the estimated useful life and a 10% increase/decrease in estimated residual value of property, plant and equipment on the expected carrying value of property, plant and equipment and the depreciation expense charged to profit or loss annually are analysed as follows: Carrying value of property, plant Depreciation and equipment expense Group Group RM’000 RM’000 Useful life - Increase by 5 years 4,500,531 189,461 - Decrease by 5 years 3,988,745 695,474 Residual value - Increase by 10% 4,424,507 264,628 - Decrease by 10% 4,417,112 271,940 (e) Fair value of investment properties The Group carries its investment properties at fair value, with changes in fair value determined using market approach based on the comparison valuation method recognised in the profit or loss. The key assumptions and basis used to determine the fair value are as disclosed in Note 17. (f) Income taxes Judgement is involved in determining the Group’s provision for income taxes as there are certain transactions and computations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises liabilities for expected tax issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recognised, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. 6. REVENUE Group Company 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Revenue from contracts with customers Vessel support services fees 239,105 287,407 – – Management fee income 2,614 1,050 45,792 74,892 Revenue from other sources Vessel chartering 789,044 621,449 – – Rental income 650 200 – – Advance interest income 3,486 50 – – Dividends from subsidiaries and joint ventures – – 354,702 45,824 1,034,899 910,156 400,494 120,716 The Group and the Company recognise revenue from contracts with customers over time.