Yinson Annual Report 2021

208 YINSON HOLDINGS BERHAD SECTION 07 : ACCOUNTABILITY NOTES TO THE FINANCIAL STATEMENTS (CONT’D) For the financial year ended 31 January 2021 2 Summary of significant accounting policies (continued) 2.7 Revenue from contracts with customers (continued) (iii) Sale of electricity (continued) Electricity is sold with prompt payment discounts based on monthly sales. Revenue from these sales is recognised based on the price specified in the PPA, net of the estimated prompt payment discount. Prompt payment discounts are estimated and recognised based on the rates as stipulated in the PPA and the expected timing of receipt of payments from the customers, and deducted against the payments received from customers. Revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. No significant element of financing is deemed present as the sales are made generally with a credit term of 30 days, which is consistent with market practice. A receivable is recognised when control of the electricity output has transferred to the customers as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due. (iv) Human resource services Revenue from provision of human resource services is recognised upon delivery of services to customers. The credit terms to customers is 30 days from the date of invoice. (v) Management fees Management fees are recognised in the period in which the services are rendered. (vi) Transportation services Transportation revenue from the provision of chauffeur services are recognised in the period which the services are rendered. The credit term is for a period of 30 days. 2.8 Revenue from other sources The Group and the Company recognises revenue from other sources as follows: (i) Chartering of FPSOs, OSVs and tankers Revenue from FPSO, OSV and tanker chartering contracts classified as operating leases are recognised on a straight-line basis over the lease period for which the customer has contractual right over the vessel. (ii) Dividend income Dividends are received from financial assets measured at FVTPL. Dividend income from financial assets at FVTPL is recognised as part of net gains or net losses on these financial instruments when the right to receive payment is established. Dividend income from subsidiaries and joint ventures is recognised when the Company's right to receive payment is established. (iii) Investment and interest income Interest income is recognised using the effective interest method. Interest income from financial assets at FVTPL is recognised as part of net gains or net losses on these financial instruments. Interest income on financial assets at amortised cost calculated using the effective interest method is recognised in profit or loss.