ANNUAL REPORT 2016
59
Techno
Dex
Berhad
(627634-A)
4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.18 FAIR VALUE MEASUREMENTS (continued)
For financial reporting purposes, the fair value measurements are analysed into level 1 to level 3 as
follows:-
Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liability that the
entity can access at the measurement date;
Level 2: Inputs are inputs, other than quoted prices included within level 1, that are observable for the
asset or liability, either directly or indirectly; and
Level 3: Inputs are unobservable inputs for the asset or liability.
The transfer of fair value between levels is determined as of the date of the event or change in circumstances
that caused the transfer.
4.19 REVENUE AND OTHER INCOME
(a) Sale of Goods
Revenue is measured at fair value of the consideration received or receivable and is recognised
upon delivery of goods and customers’ acceptance and where applicable, net of returns and trade
discounts.
(b) Services
Revenue is recognised upon the rendering of services and when the outcome of the transaction can be
estimated reliably. In the event the outcome of the transaction could not be estimated reliably, revenue
is recognised to the extent of the expenses incurred that are recoverable.
(c) Interest Income
Interest income is recognised on an accrual basis using the effective interest method.
(d) Rental Income
Rental income is recognised on an accrual basis.
4.20 OPERATING SEGMENTS
An operating segment is a component of the Group that engages in business activities from which it may
earn revenues and incur expenses, including revenues and expenses that relate to transactions with any
of the Group’s other components. An operating segment’s operating results are reviewed regularly by the
chief operating decision maker to make decisions about resources to be allocated to the segment and
assess its performance, and for which discrete financial information is available.
4.21 BORROWING COSTS
Borrowing costs, directly attributable to the acquisition, construction or production of a qualifying asset are
capitalised as part of the cost of those assets, until such time as the assets are ready for their intended use or
sale. Capitalisation of borrowing costs is suspended during extended periods in which active development
is interrupted.
All other borrowing costs are recognised in profit or loss as expenses in the period in which they incurred.
NOTES TO THE
FINANCIAL STATEMENTS
(continued)
