159 F INANC IAL Statements Sect ion 05 Annual Report 2022 NOTES TO THE F INANC I AL STATEMENTS For the year ended 31 December 2022 3. SIGNIFICANT ACCOUNTING POLICIES (contd.) Revenue from contracts with customers and other revenue (contd.) (e) Recognise revenue when (or as) the Group and the Company satisfy a performance obligation. (contd.) (iii) Provide benefits that the customer simultaneously receives and consumes as the Group and the Company perform. For performance obligations where any one of the above conditions are met, revenue is recognised over time at which the performance obligation is satisfied. For performance obligations that the Group satisfies over time, the Group determined that the input method is the best method in measuring progress of the services because there is direct relationship between the Group’s effort and the transfer of service to the customer. The following describes the performance obligation in contracts with customers: (a) Water revenue Water revenue is recognised at the point in time when the treated water is discharged through the reading meters installed, i.e. when control of the asset is transferred to the customer, generally at the point in time at which the customer consumes the water. Water revenue includes an estimated value of the water consumed by customers from the date of their last meter reading and period end. Accrued unbilled revenues are reversed in the following month when actual billings occur. Revenue is not recognised to the extent where there are significant uncertainties regarding recovery of the consideration due and associated costs. (b) Power revenue Revenue from the sale of electricity is recognised upon delivery of electricity. The Group applies the practical expedient of recognising revenue in the amount to which the Group has a right to invoice if it corresponds directly with the value to customer of the Group’s performance that is completed to date. Power revenue also includes operation and maintenance revenue which is recognised over time in the period when services are rendered. Revenue relating to construction services under a service concession arrangement, where applicable, is recognised over time using the input method, as and when the performance obligations are satisfied. (c) Contribution by housing developers Contribution by housing developers is recognised as income at the point in time in accordance with the respective commercial agreements. (d) Non-revenue water reduction income Non-revenue water (“NRW”) reduction income is generated from management consultancy services relating to water-related projects to water operators and businesses. These services are provided on a time and material basis or as a fixed-price contract, with contract terms generally ranging from one to two years. The Group has enforceable right to payment for performance completed to-date and therefore, the Group recognises revenue over time by measuring its progress towards complete satisfaction of that performance obligation.
RkJQdWJsaXNoZXIy ODQxNzg=