265 INTEGRATED ANNUAL REPORT 2024 Key Messages Financial Statements Other Information NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024 Overview of Wasco Berhad Value Creation Commitment to Governance Sustainability Journey 27 GROSS REVENUE (CONTINUED) (a) Revenue from contracts with customer (continued) (i) Contract revenue (continued) Revenue are recognised over time when control of the asset is transferred over time when the Group’s performance: • creates and enhances an asset that the customer controls as the services are being performed; or • 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. The progress towards complete satisfaction of the performance obligation is measured based on one of the following methods that best reflect the Group’s performance in satisfying the performance obligation: • direct measurements of the value transferred by the Group to the customer (eg. surveys of performance completed to date); or • the Group’s efforts or inputs to the satisfaction of the performance obligation (eg. by reference to cost incurred up to the end of the reporting period as a percentage of total estimated costs for complete satisfaction of the contract). Revenue is recognised over the period of the contract by reference to the progress, based on the extent of contract costs incurred. Significant judgement is required in the estimation of the progress towards complete satisfaction of a performance obligation based on the extent of contract costs incurred over the estimated budget cost and the recoverability of the construction contracts. The estimated contract costs to completion is based on estimated and approved budgets, which require assessment and judgements to be made on changes in, for example, work scope, costs and costs to completion. In making these judgements, management relies on past experience. (ii) Sales of goods The Group manufactures and sells a range of pipes for industrial use. The Group is also involved in the business of selling building materials, construction equipment, and power generators. Revenue from sales of goods are recognised at a point in time when control of the good is transferred to the customer upon delivery. (iii) Management fee Management fee is recognised on an accrual basis when service is rendered.
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