2020 UEM Edgenta Annual Report

2. SIGNIFICANT ACCOUNTING POLICIES (CONTD.) 2.4 Summary of significant accounting policies (contd.) w. Income recognition (contd.) Revenue from contracts with customers (contd.) iii. Infrastructure services (contd.) R evenue for routine maintenance is recognised based on fixed sum contract while revenue for non routine maintenance is recognised based on schedule of rates agreed with customers. iv. Property and Facility Solutions T he Group provides various facilities management including infrastructure, building and ground maintenance to commercial customers. These services are provided on a time and material basis or as a fixed-priced contract, with contract terms generally ranging from one (1) year to three (3) years. Revenue from these services is recognised over time in the period the services are rendered. The Group also provides green technology and sustainability services in retro-fitting works of buildings followed by a period in which the Group maintains and services the infrastructure. In such contracts, revenue from the supply of retro-fitting equipment and installation works are recognised at the point in time when: i. the control of the asset is transferred to the customer upon the acceptance of physical possession of the asset and successful testing and commissioning; and ii. the significant risks and rewards of ownership of the asset is borne by the customer. R evenue from the maintenance and servicing of the infrastructure subsequent to the retro-fitting is recognised over time in the period the services are rendered. v. Property development R evenue from sale of property development is recognised over time. R evenue from sale of completed property units is recognised at the point of time upon the control of the asset is transferred to the customer and it is probable that the Group will collect the consideration to which it entitled in exchange for the asset that will be transferred to the customer. vi. Management fees M anagement fees for services provided to entities within the Group are recognised over time as services are rendered. ANNUAL REPORT 2020 219 1 2 3 4 5 6 7 8