123 Annual Report 2024 2. Summary of significant accounting policies (cont’d) 2.3 Standards issued but not yet effective The Group has not adopted the following standards applicable to the Group that have been issued but are not yet effective: Description Effective for annual periods beginning on or after Amendments to SFRS(I) 1-21: Lack of Exchangeability 1 January 2025 Amendments to SFRS(I) 9 and SFRS(I) 7: Amendments to the Classification and Measurement of Financial Instruments 1 January 2026 Annual Improvements to FRSs—Volume 11 1 January 2026 SFRS(I) 18: Presentation and Disclosure in Financial Statements 1 January 2027 SFRS(I) 19: Subsidiaries without Public Accountability 1 January 2027 Amendments to SFRS(I) 10 and SFRS(I) 1-28: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture To be determined The directors expect that the adoption of the standards above will have no material impact on the financial statements in the year of initial application. These amendments had no impact on the consolidated financial statements of the Group. The Group intends to use the practical expedients in future periods if they become applicable. 2.4 Significant accounting judgments and estimates The preparation of the Group’s consolidated financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the end of each reporting period. Uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in the future periods. (a) Judgments made in applying accounting policies Except as those disclosed in this report, management is of the opinion that there is no other significant judgment made in applying accounting policies that have a significant effect on the amounts recognised in the consolidated financial statements within the next financial period. Project revenue For the financial year ended 31 December 2024, the Group recognised project revenue of $432,520,000 (2023: $322,586,000) and the carrying amounts of contract assets and contract liabilities arising from these projects as at 31 December 2024 amounted to $121,160,000 and $85,686,000 (2023: $124,765,000 and $96,703,000) respectively. The Group recognised revenue from project contracts using the input method that reflect the overtime transfer of control to its customers, which is measured by reference to the Group’s progress towards completing the performance obligation on the contract. The measure of progress is determined by reference to the contract costs incurred to date as a percentage of the total estimated costs for each contract. The carrying amounts of assets and liabilities arising from construction contracts at the end of each reporting period are disclosed in Note 9 to the consolidated financial statements. NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2024
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