YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2024 206 NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 January 2024 2. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED) 2.6 Revenue from contracts with customers (continued) (v) Contract assets Contract assets as defined in MFRS 15 represent the Group’s construction work-in-progress. Construction work-in-progress is the Group‘s right to consideration in exchange for goods and services that the Group has transferred to the customer. The Group‘s contract assets are measured as accumulated revenue recognised over time based on progress of the project net of installments invoiced to date. The invoiced installments represent the contractually agreed unconditional milestone payments during the construction period and these amounts are classified as trade receivables until the amount is paid. The Group recognises any losses from onerous contracts under provisions in line with MFRS 137. (vi) Contract liabilities The Group recognises a contract liability where installments are invoiced or received in advance of satisfying the performance obligation towards the customer. Included in contract liabilities is also charter income received in advance which are deferred and amortised on a straight-line basis over the contract period. 2.7 Revenue from other sources The Group and the Company recognise revenue from other sources as follows: (i) Chartering of FPSOs and OSVs Revenue from FPSO and OSV chartering contracts classified as operating leases are recognised on a straight-line basis over the lease period for which the customer has contractual right over the vessel. (ii) Dividend income Dividends are received from financial assets measured at FVTPL. Dividend income from financial assets at FVTPL is recognised as part of net gains or net losses on these financial instruments when the right to receive payment is established. Dividend income from subsidiaries and joint ventures is recognised when the Company’s right to receive payment is established. (iii) Investment and interest income Interest income is recognised using the effective interest method. Interest income from financial assets at FVTPL is recognised as part of net gains or net losses on these financial instruments. Interest income on financial assets at amortised cost calculated using the effective interest method is recognised in profit or loss.
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