AwanBiru Technology Berhad - Annual Report 2021

Independent Auditors’ Report To the Members of AwanBiru Technology Berhad (Formerly known as Prestariang Berhad) (Cont’d) (Incorporated in Malaysia) Revenue recognition from contracts with customers Refer to Notes 5.23, 30 and 35 to the financial statements Key Audit Matter How our audit addressed the key audit matter During the financial year ended 30 June 2021, the Group recognised revenue amounting to RM104.9 million. We focused on this area as there are judgements involved in arriving at the quantum and timing of revenue recognised. Certain contracts with customers with multi element arrangements may include sales of hardware, software, maintenance and support services. Judgement is exercised in determining the number of distinct performance obligations included within these contracts with customers. Allocation of transaction price to the identified performance obligations based on the standalone selling prices. Judgement is exercised in determining the appropriate estimation of fair values of the identified performance obligations. The timing of revenue recognition may differ from the timing of billing to customers. When the considerations received from customers exceed the services rendered by the Group, a contract liability is recognised. Judgement is exercised in anticipating the timing between recognition of revenue and billings to the customers which may subsequently change due to specific risks and performance of the actual contract terms. As at 30 June 2021, the Group had recognised contract liabilities amounting to RM9.6 million. As a result of the above conditions, we regard revenue recognition from contracts with customers as a key audit matter for the Group. Our audit procedures included, amongst others: • Reviewed contracts with customers containing multiple performance obligations and assessed the appropriateness of revenue recognition under MFRS 15; • Reviewedmanagement’s assessment on the identification of separate performance obligations over material customer contracts with bundling arrangements and sighted to the customer contracts on a sampling basis; • Reviewed management’s assessment of the allocation of transaction price between various performance obligations; • Evaluated the effectiveness of the Group’s internal controls over revenue recognition for sales of goods and services on a sampling basis; • Inspected evidence for delivery of goods and services and sales invoices in respect of samples selected from sales of goods and services transacted immediately before and after the end of the reporting period to assess whether the revenue were recorded in the correct financial year; and • Inspected samples of credit notes issued by the Group subsequent to year end to ascertain whether they relate to return of goods or sales cancellation in respect of revenue recognised before the year end. Information Other than the Financial Statements and Auditors’ Report Thereon The directors of the Company are responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements of the Group and of the Company and our auditors’ report thereon. Our opinion on the financial statements of the Group and of the Company does not cover the other information and we do not express any form of assurance conclusion thereon. Key Audit Matters (Cont’d) Awantec | Financial Review Annual Report 2021 134