Registration No. 200301030845 (633265-K) - 58 - 3. Material Accounting Policies (Cont’d) (q) Revenue recognition (Cont’d) (i) Revenue from contracts with customers (Cont’d) (b) Rendering of services Revenue from services and management fees are recognised in the reporting period in which the services are rendered, as the customer simultaneously receives and consumes the benefits provided by the Group, and the Group has a present right to payment for the services. (c) Maintenance, repair and overhaul (“MRO”) services Revenue from MRO services on train sets is recognised over time using an output method based on train sets handed back to and accepted by the customer. Consideration for each train set is billed partly on hand-back and partly in instalments over the warranty period; amounts billable in instalments are recognised as trade receivables when the right to consideration becomes unconditional. Liquidated ascertained damages and scope omissions agreed with the customer are accounted for as variable consideration and deducted from the transaction price. The warranty provided under these contracts assures that the services comply with the agreed specifications and is not a separate performance obligation; the expected cost of rectification is recognised as a provision. DESTINI BERHAD 171 ANNUAL REPORT 2026
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