185 ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2023 19. REVENUE (CONT’D) (b) Recognition of project revenue over time For the project revenue where the Group satisfies its performance obligations over time, management has determined that a cost-based input method provides a faithful depiction of the Group’s performance in transferring control to the customers, as it reflects the Group’s efforts incurred to date relative to the total inputs expected to be incurred for the projects. The measure of progress is based on the costs incurred to date as a proportion of total costs expected to be incurred up to the completion of the projects. The determination of total budgeted costs, progress towards completion, variation orders and claims and remaining costs to completion for each contract requires significant management judgement and estimation. Management relies on past experience and knowledge of the project engineers to make estimates of the amounts to be incurred. In making these estimates, management takes into consideration the historical trends of the amounts incurred in its other similar projects, analysed by different geographical areas for the past years. 20. OTHER NON-OPERATING INCOME Group 2023 2022 $’000 $’000 Miscellaneous income 856 978 Foreign exchange gain, net 368 99 Gain on disposal of property, plant and equipment 70 4,386 Other income/(expenses) 24 (30) 1,318 5,433
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