Company: ARBB
Filing Date: 2025-10-31
Form Type: 20-F
Source: 0001213900-25-104705
Chunk: 125

Company: ARB IOT Group Ltd
Filing Date: 2025-10-31
Form: 20-F
Item: Item 19
Chunk 125
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 to
ensure consistency with the policies adopted by the Group.

F-15

2. MATERIAL ACCOUNTING POLICY INFORMATION (CONT’ D)

Segmental Information

An operating segment is defined as a component
of an entity for which discrete financial information is available and whose operating results are regularly reviewed by the Chief Operating
Decision Maker (CODM). The CODM is comprised of the Management Board of the Group. The Group operates as two segments dedicated to the
provision of hardware and software of Internet of Things solutions and investment holding and others. The CODM makes decisions about allocating
resources and assessing performance based on the Group as a whole. Accordingly, the Group has determined it operates in two operating
and reportable segments.

Foreign currency translation

The consolidated financial statements are presented in Ringgit Malaysia
(“ RM”). The functional currency of the Company and its subsidiaries is primarily the currency of their country of domicile,
which the functional currency of the Company is United States Dollar (“ USD”) and the subsidiaries is Ringgit Malaysia (“ RM”)
or Singapore Dollar (“ SGD”)..

Foreign currency transactions

Foreign currency transactions are translated into RM using the exchange
rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions
and from the translation at financial year end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognized in profit or loss. Non-monetary items are converted at the rate of exchange used to convert the related consolidated statements
of financial position items, i. e., at the time of the transaction.

Revenue recognition

Revenues are generally recognized upon the transfer
of control of promised products or services provided to our customers, reflecting the amount of consideration we expect to receive for
those products or services. We enter into contracts that can include various combinations of products and services, which are generally
capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of any taxes collected from
customers, which are subsequently remitted to governmental authorities.

Revenues are recognized upon the application of the following steps:

   1      Identification                                 

   2      Identification                                   

   3      Determination              

   4      Allocation                                                                    

   5      Recognition                                                       

The Group currently generates its revenue from
following main sources:

Sale of goods

The Group is engaged in supply of customized IoT software or hardware.
The majority of the sale of goods contracts are supply and install customized a set of IoT Smart Agriculture solution and customized source
codes and