Company: VCIG
Filing Date: 2025-05-13
Form Type: 20-F
Source: 0001213900-25-042476
Chunk: 75

Company: VCI Global Ltd
Filing Date: 2025-05-13
Form: 20-F
Item: Item 4A
Chunk 75
---
in exchange for those services. Specifically, the Company uses a five-step approach to recognize revenue:

  Step 1: Identify the contract(s) with a client  

  Step 2: Identify the performance obligations in the contract  

  Step 3: Determine the transaction price  

  Step 4: Allocate the transaction price to the performance obligations in the contract  

  Step 5: Recognize revenue when (or as) the Company satisfies a performance obligation  

The Company recognizes revenue when (or as) a
performance obligation is satisfied, i. e. when “control” of the services underlying the particular performance obligations
is transferred to clients.

A performance obligation represents a service
(or a bundle of services) that is distinct or a series of distinct services that are substantially the same.

Control is transferred overtime and revenue is
recognized overtime by reference to the progress towards complete satisfaction of the relevant performance obligation if one of the following
criteria is met:

  the client simultaneously receives and consumes the benefits provided by the Company’s performance as the Company performs;  

  the Company’s performance creates or enhances an asset that the client controls as the asset is created or enhanced; or  

  the Company’s performance does not create an asset with an alternative use to the Company and the Company has an enforceable right to payment for performance completed to date.  

Otherwise, revenue is
recognized at a point in time when the customer obtains control of the distinct service.

Advance payments received from clients are recognized
as contract liabilities as the Group has not yet satisfied its performance obligation. Contract liabilities are recognized as other income
when the Group satisfied its performance obligation.

  Business Strategy Consultancy  
 ─────────────────────────────────

Business strategy consultancy services
primarily included listing solutions, investors relations and boardroom strategies consultancy. The revenues generated from business strategy
consultancy services are generally based on the fixed fee billing arrangements that require the clients to pay a pre-established fee in
exchange for a predetermined set of professional services. The clients agree to pay a fixed fee periodically over the contract terms as
specified in the service agreements.

Our contracts from business strategy
consultancy are typically less than a year in duration. Revenues are generally recognized over time. When contractual billings represent
an amount that corresponds directly with the value provided to the client, revenues are recognized as amount become billable in accordance
with the contract terms. Revenues from fixed-priced contracts are generally recognized using costs incurred to date relative to total
estimated costs at completion to measure progress toward satisfying the Company