Tropicana Corporation Berhad Annual Report 2022

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.) 2.28 Revenue (cont’d.) (d) Recreation and resort operations R evenue from recreational club operations including subscription fees but excluding club membership fees are recognised when the services are rendered. The payment of the transaction price is due immediately upon delivery of the services. Recreational club membership fees which are received upfront are recognised on a straight-line basis over the tenure of the respective memberships. (e) Rental of hotel rooms R evenue from rental of hotel rooms, sale of food and beverages and other related income are recognised upon provision of the services. (f) Dividend income Dividend income is recognised when the right to receive payment is established. (g) Interest income Interest income is recognised by using the EIR method. (h) Rental income R ental income is accounted for on a straight-line basis over the lease terms. The aggregate costs of incentives provided to lessees are recognised as a reduction of rental income over the lease term on a straight-line basis. (i) Management and maintenance fees Management and maintenance fees are recognised when services are rendered. (j) Private school operations T uition fees are recognised over the school term period, whereas enrolment, registration, resource and other fees are recognised as revenue when no significant uncertainty as to its collectibility exists. (k) Revenue from electricity R evenue for electricity supply activities includes an assessment of electricity supplied to customers between the date of the last meter reading and the financial year end of the Group (unread and unbilled). Electricity revenue is recognised over time by the Group when electricity is consumed by customers. 2.29 Segment reporting F or management purposes, the Group is organised into operating segments based on their products and services which are independently managed by the respective segment managers responsible for the performance of the respective segments under their charge. The segment managers report directly to the management of the Company who regularly review the segment results in order to allocate resources to the segments and to assess the segment performance. Additional disclosures on each of these segments are disclosed in Note 42, including the factors used to identify the reportable segments and the measurement basis of segment information. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022 190 ANNUAL REPORT 2022

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