Page 242 - BTSGroup ONE REPORT 2021/22_EN

240 l Introduction l Nature of Business l Organisation and Shareholding Structure l Business Review l Corporate Governance l Financial Statements l Other Information l

All assets and liabilities for which fair value is measured or disclosed in - the customer simultaneously receives and consumes the benefits
the financial statements are categorised within the fair value hierarchy provided by the entity’s performance as the entity performs
into three levels based on categorise of input to be used in fair value
measurement as follows: - the entity’s performance creates or enhances an asset that the
customer controls as the asset is created or enhanced; or
Level 1 - Use of quoted market prices in an active market for such
assets or liabilities - the entity’s performance does not create an asset with an alternative
use to the entity and the entity has an enforceable right to payment
Level 2 - Use of other observable inputs for such assets or liabilities, for performance completed to date
whether directly or indirectly
Where the above criteria are not met, revenue is recognised at a point
Level 3 - Use of unobservable inputs such as estimates of future cash flows in time. Where revenue is recognised at a point in time, the management
is required to determine when the performance obligation under the
At the end of each reporting period, the Group determines whether contract is satisfied.
transfers have occurred between levels within the fair value hierarchy
for assets and liabilities held at the end of the reporting period that are In calculating the revenue recognised over time, the management is
measured at fair value on a recurring basis. required to use judgement regarding measuring progress towards
complete satisfaction of a performance obligation, measuring based on
5. Signif cant accounting judgements and estimates information provided by engineers or project managers or measuring
The preparation of financial statements in conformity with financial based on comparison of actual construction costs incurred up to the
reporting standards at times requires management to make subjective end of the period and total anticipated construction costs to be incurred
judgements and estimates regarding matters that are inherently uncertain. to completion.
These judgements and estimates affect reported amounts and disclosures
and actual results could differ from these estimates. Significant Financial statement of subsidiaries that the Group hold less than
judgements and estimates are as follows: half of shares
The management of the Group determined that the Group have control
Revenue from contracts with customers over Rabbit Care Company Limited (“RC”), even though the Group
hold 49.72% of shares and voting rights. This is because the Group is
Determination of timing of revenue recognition major shareholder with having the power to direct significant activities
In determining the timing of revenue recognition, the management is of such company and direct the policies, management or operations
required to use judgement regarding whether performance obligations of RC through RC’s Board of Directors. As a result, RC is deemed to
are satisfied over time or at a point in time, taking into consideration be subsidiary of the Group and has to be included in the consolidated
terms and conditions of the arrangement. The Group recognises revenue financial statements from the date on which the Group assumed control.
over time in the following circumstances: