Green Technology Annual Report

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 4.13 FAIR VALUE MEASUREMENTS (CONT’D) 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. 4.14 REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue from contracts with customers is measured based on the consideration specified in a contract with a customer in exchange for transferring services to a customer net of sales and service tax, returns, rebates and discounts. The Group recognises revenue when (or as) it transfers control over a service to customer. Depending on the substance of the contract, revenue is recognised when the performance obligation is satisfied, which may be at a point in time or over time. Rendering of Services Revenue from providing services is recognised when the services are rendered. 4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 4.15 OTHER OPERATING INCOME (a) Government grants Government grants are recognised at their fair value when there is reasonable assurance that they will be received and all conditions attached will be met. Grants that compensate the Group for expenses incurred are recognised in profit or loss on a systematic basis over the period necessary to match them with the related expenses which they are intended to compensate for. These grants are presented as other income in profit or loss. (b) Interest income Interest income is recognised on an accrual basis using the effect interest method. 117 MALAYSIAN GREEN TECHNOLOGY & CLIMATE CHANGE CENTRE ANNUAL REPORT 2019