The Group transfers control of a good or service at a point in time unless one of the following overtime criteria is met:(a)the customer simultaneously receives and consumes the benefits provided as the Group performs;(b) the Group’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or(c) the Group’s performance does not create an asset with an alternative use and the Group has an enforceable right to payment for performance completed to date. Revenue is measured at the fair value of consideration received or receivable. The following describes the performance obligations in contracts with customers.(a) Sale of goods Revenue from sale of products is recognised at a point in time when the products has been transferred to the customer and coincides with the delivery of products and acceptance by customers.(b) Management feeManagement fee from rendering of services is recognised when the services are rendered. Revenue recognition not in relation to performance obligations is described below:Rental income is accounted for on a straight line basis over the lease term of an ongoing lease. Interest income is recognised as it accrues, using the effective interest method.4.20 Operating segmentsOperating segments are defined as components of the Group that:
GUAN CHONG BERHAD / ANNUAL REPORT 201879NOTES TO THE FINANCIAL STATEMENTS31 DECEMBER 2018(CONT’D)4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)4.20 Operating segments (Cont’d)An operating segment may engage in business activities for which it has yet to earn revenues.The Group reports separately information about each operating segment that meets any of the following quantitative thresholds:(i)The combined reported profit of all operating segments that did not report a loss; and(ii) The combined reported loss of all operating segments that reported a loss.
- Spring '15
- Balance Sheet, Guan Chong Berhad