Company: VCIG
Filing Date: 2025-05-13
Form Type: 20-F
Source: 0001213900-25-042476
Chunk: 76

Company: VCI Global Ltd
Filing Date: 2025-05-13
Form: 20-F
Item: Item 4A
Chunk 76
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 performance obligations. Incurred cost represents work
performed, which corresponds with, and thereby best depicts, the transfer of control to client.

  Technology Consultancy  
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Technology development, solutions and
consultancy included digital development, fintech solution and software solutions.

Technology Development

The contract is typically fixed priced
and does not provide any post contract client support or upgrades. The Company designs system based on clients’ specific needs which
require the Company to perform services including design/redesign, development, and integration. These services also require significant
customization. Upon delivery of the services, client acceptance is generally required. The Company assesses that software development
services is considered as one performance obligation. The duration of the development period is usually six months to two years.

The Company’s system development
service revenues are generated primarily from contracts with clients across sectors. The contracts contain negotiated billing terms which
generally include multiple payment phases throughout the contract term and a portion of contract amount usually is billed upon the completion
of the related projects. Pursuant to the contract terms, the Company has enforceable right on payments for the work performed.

The Company’s revenue from technology
development contracts is generally recognized over time. The Company uses an input method based on cost incurred as the Company believes
that this method most accurately reflects the Company’s progress toward satisfaction of the performance obligation, which usually
takes six months to two years. Under this method, the Company could appropriately measure the fulfilment of a performance obligation.
Assumptions, risks, and uncertainties inherent in the estimates used to measure progress could affect the amount of revenues, receivables,
and deferred revenues at each reporting period.

Solutions and Consultancy

Revenue from solutions and consulting
services is primarily comprised of fixed-fee contracts, which require the Company to provide professional solutions and consulting services
over contract terms beginning on the commencement date of each contract, which is the date its service is made available to clients. Billings
to the clients are generally on a monthly or quarterly basis over the contract term, which is typically 6 to 12 months. The solutions
and consulting services contracts typically include a single performance obligation. The revenue from solutions and consulting services
is recognized over the contract term.

Income Tax

Current income tax for current and prior periods
is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been
enacted or substantively enacted by the balance sheet date. Management