2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (o) Contingent liabilities Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is not recognised in the statements of financial position and is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events, are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote. (p) Revenue and other income (i) Revenue Revenue is measured based on the consideration specified in a contract with a customer in exchange for transferring goods or services to a customer, excluding amounts collected on behalf of third parties. The Group or the Company recognises revenue when (or as) it transfers control over a product or service to a customer. An asset is transferred when (or as) the customer obtains control of the asset. The Group or the Company transfers control of a good or service at a point in time unless one of the following over time criteria is met: • the customer simultaneously receives and consumes the benefits provided as the Group or the Company performs; • the Group’s or the Company’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or • the Group’s or the Company’s performance does not create an asset with an alternative use and the Group or the Company has an enforceable right to payment for performance completed to date. (a) Sale of semiconductor wafers Revenue from sale of semiconductor wafers is recognised at the point of sale which coincides with when the Group transfers the control of the product to the customer. For contracts with customers which meet the no alternative use and the Group has rights to payment for work performed, revenue is recognised over time based on units-of-production method. (b) Sale of oil and gas products Revenue from sale of oil and gas products is recognised when the performance obligation has been met, being the point at which the title has been transferred to the buyer by means of the bill of lading document. Typically, payments for the sale of the oil and gas are received in advance or the maximum credit exposure is by the end of the month following the month in which the sale is recognised. Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for oil products in the normal course of business, net of discounts, customs duties, sales taxes and royalties. Integrated Report 2023 221
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