NOTES TO THE FINANCIAL STATEMENTS Cont’d 20. Revenue cont’d 20.3 Transaction price allocated to the remaining performance obligations The following table shows revenue from performance obligations that are unsatisfied (or partially unsatisfied) at the reporting date. The disclosure is only providing information for contracts that have a duration of more than one year. Group 2023 RM’000 2022 Contracting and fabrication - 2022 RM’000 2021 Contracting and fabrication 14,396 The above revenue does not include variable consideration which has not been approved/acknowledged by customers. The Group applies the following practical expedients: • exemption on disclosure of information on remaining performance obligations that have original expected durations of one year or less. • exemption not to adjust the promised amount of consideration for the effects of a significant financing component when the period between the transfer of a promised good or service to a customer and when the customer pays for that good or service is one year or less. 20.4 Judgements and assumptions arising from revenue recognition The Group applied the following judgements and assumptions that affect the determination of the amount and timing of revenue recognised from contracts with customers: • For contracting and fabrication, the Group measured the performance of work done by comparing the actual costs incurred with the estimated total costs required to complete the contracting and fabrication work. Judgements are required to estimate the total contract costs to complete. In making these estimates, management relied on professionals’ estimates and also on past experience of completed projects. A change in the estimates will directly affect the revenue to be recognised. • For smelting aluminium, extrusion aluminium and alumina products, control of the goods is transferred to the customers when the goods are shipped on board evidenced by bill of lading. The Group estimates that the revenue from the additional performance obligation, arising from shipping and handling activities provided to be recognised over time, is immaterial for separate recognition from the sale of products. ANNUAL REPORT 2022 268
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