3. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS (CONT’D.) 3.2 Judgement made in applying accounting policies In the process of applying the Group’s and the Company’s accounting policies, management has made the following judgements, apart from there involving estimations, which have the most significant effect on the amounts recognised in the financial statements: Classification between investment properties and property, plant and equipment The Group has developed certain criteria based on MFRS 140 in making judgement whether a property quali es as an investment property. Investment property is a property held to earn rentals or for capital appreciation or both. Some properties comprise a portion that is held to earn rentals or for capital appreciation and another portion that is held for use in the production or supply of goods or services or for administrative purposes. If these portions could be sold separately (or leased out separately under a nance lease), the Group would account for the portions separately. If the portions could not be sold separately, the property is an investment property only if an insigni cant portion is held for use in the production or supply of goods or services or for administrative purposes. Judgement is made on an individual property basis to determine whether ancillary services are so signi cant that a property does not qualify as investment property. 4. REVENUE Group Company 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000 Revenue from contracts with customers 811,315 1,025,197 20,475 20,529 Revenue from other sources: - Rental and related income from investment properties 39,076 31,442 – – - Dividend income from subsidiaries (Note 37(a)) – – 21,754 35,750 - Dividend income from other investments 9,265 33 – – - Gain on disposal of quoted shares 15,083 4,823 – – - Others 1,276 1,076 – – 876,015 1,062,571 42,229 56,279 Disaggregation of the revenue from contracts with customers: Major goods and services Sale of development properties 650,847 488,533 – – Sale of land 23,903 400,901 – – Sale of building materials 9,470 8,172 – – Revenue from recreation and resort operations 35,876 37,985 – – Property management and maintenance fees 6,578 5,939 – – Revenue from private school operations 47,067 47,181 – – Revenue from landscape services 3,339 4,349 – – Revenue from hotel operations 30,339 25,847 – – Revenue from electricity 3,896 6,290 – – Management fees from subsidiaries (Note 37(a)) – – 20,475 20,529 Revenue from contracts with customers 811,315 1,025,197 20,475 20,529 Geographical market Malaysia 811,315 1,025,197 20,475 20,529 Timing of revenue recognition - at a point in time 252,454 528,336 20,475 20,529 - over time 558,861 496,861 – – 811,315 1,025,197 20,475 20,529 Revenue from contracts with customers of the Group includes RM48,902,000 (2020: RM174,806,000) that was included in contract liabilities at the beginning of the financial year. FINANCIAL STATEMENTS NOTES TO THE For the financial year ended 31 December 2021 Annual Report 2021 TROPICANA CORPORATION BERHAD FINANCIAL STATEMENTS AND OTHER INFORMATION 252 253
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