Dagang NeXchange Berhad Annual Report 2018

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (n) Provisions A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost. (o) Revenue and other income (i) Revenue Revenue is measured based on the consideration specified in a contract with a customer in exchange for transferring goods or services to a customer, excluding amounts collected on behalf of third parties. The Group or the Company recognises revenue when (or as) it transfers control over a product or service to a customer. An asset is transferred when (or as) the customer obtains control of the asset. The Group or the Company transfers control of a good or service at a point in time unless one of the following overtime criteria is met: • the customer simultaneously receives and consumes the benefits provided as the Group or the Company performs; • the Group’s or the Company’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or • the Group’s or the Company’s performance does not create an asset with an alternative use and the Group or the Company has an enforceable right to payment for performance completed to date. (a) Sale of customised equipment Revenue from sale of customised equipment is recognised at a point in time in the period in which the customer accepts the delivery of the goods. Contracts that bundle the design, sale and installation of customised equipment are recognised as a single performance obligation as the design and installation includes significant integration services. Revenue is recognised progressively in proportion to the stage of completion determined by reference to technical milestones. (b) Sale of merchandise goods Revenue from sale of merchandise goods is recognised at a point in time in the period in which the customer accepts the delivery of the goods. (c) Rendering of services Contracts from services that comprises multiple deliverables represents a combined output for which the customer has contracted for that are substantially the same and that have the same pattern of transfer to the customer and are therefore recognised as a single performance obligation. The Group recognises revenue from the rendering of services over time, using an output method determined by surveys of works performed to measure progress towards complete satisfaction of the services. Otherwise, revenue from rendering of services is recognised at a point in time upon performance of services, such services include the services rendered from National Single Window and its related contracts. 122 Dagang NeXchange Berhad Annual Report 2018 Notes to the Financial Statements (CONTINUED)