NOTES TO THE FINANCIAL STATEMENTS Cont’d 20. Revenue cont’d 20.2 Nature of goods and services The following information reflects the typical transactions of the Group: Nature of goods or services Timing of recognition or method used to recognise revenue Significant payment terms Variable element in consideration Obligation for returns or refunds Warranty Smelting aluminium products Revenue is recognised when the goods are shipped on board evidenced by bill of lading. Credit period of 0-30 days from invoice date. Not applicable. The Group allows returns only for exchange with new goods (i.e. no cash refunds are offered). Not applicable. Extrusion aluminium products Revenue is recognised when the goods are delivered and accepted by the customers at their premises or shipped on board evidenced by bill of lading. Credit period of 90 days from invoice date. Not applicable. The Group allows returns only for exchange with new goods (i.e. no cash refunds are offered). Not applicable. Alumina products Revenue is recognised when the goods are shipped on board evidenced by bill of lading. Credit period of 7 days from invoice date. Not applicable. Not applicable. Not applicable. Contracting and fabrication Revenue is recognised over time using the cost incurred method. Based on agreed milestones, certified by architects. Not applicable. Not applicable. Generally, defect liability period of 2 years is given to the customer. PRESS METAL ALUMINIUM HOLDINGS BERHAD 267
RkJQdWJsaXNoZXIy NDgzMzc=