ENRA Group Berhad Annual Report 2021

FINANCIAL STATEMENTS & OTHERS ENRA Group Berhad | Annual Report 2021 154 NOTES TO THE FINANCIAL STATEMENTS 31 MARCH 2021 26. REVENUE (cont’d) Company Energy Property services development Total RM’000 RM’000 RM’000 31 March 2020 Major product and service line Sale of completed properties – 3,535 3,535 Timing of revenue recognition Transferred at a point in time – 3,535 3,535 (a) Sale of goods Revenue from sale of goods is recognised at a point in time when the products have been transferred to the customer and coincides with the delivery of products and acceptance by customers. Some contracts for the sale of goods 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. The Group uses the expected value method to estimate goods that will not be returned. There is no significant financing component in the revenue arising from sale of goods as the sales are made on the normal credit terms not exceeding twelve months. (b) Energy services income Energy services income is recognised at over time. The income is recognised over time as income when the customers receives and consumes the benefits. (c) Revenue from property development and construction contracts Contracts with customers include multiple promises to customers and therefore accounted for as separate performance obligations. In this case, the transaction price will be allocated to each performance obligation based on the stand-alone selling prices. When these are not directly observable, they are estimated based on expected cost plus margin. Revenue from property development and construction contracts is measured at the fixed transaction price agreed under the agreement. Revenue is recognised as and when control of the asset is transferred to the customer and it is probable that the Group would collect the consideration to which it will be entitled in exchange for the asset that would be transferred to the customer. Depending on the terms of the contract and the laws that apply to the contract, control of the asset may transfer over time or at a point in time. Control of the asset is transferred over time if the performance of the Group does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date.