Page 67 - JTC-Annual Report-2025-Eng

JTC Logistics Transportation & Stevedoring Company K.S.C.P
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
As at December 31, 2025
(All amounts are in Kuwaiti Dinars)

▶ Step 4: Allocate the transaction price to the performance obligations in the contracts –
For a contract that has more than one performance obligation, the Group will allocate the
transaction price to each performance obligation in an amount that depicts the amount
of consideration to which the Group expects to be entitled in exchange for satisfying each
performance obligation.
▶ Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.
The Group exercise judgement, taking into consideration all of the relevant facts and
circumstances when applying each step of the model to contracts with their customers.
The Group recognizes revenue either at a point in time or over time, when (or as) the Group
satisfies performance obligations by transferring the promised goods or services to its
customers. The Group transfers control of a good or service over time (rather than at a point
in time) when any of the following criteria are met:
▶ The customer simultaneously receives and consumes the benefits provided by the entity’s
performance as the entity performs.
▶ The Group’s performance creates or enhances an asset (e.g., work in process) that the
customer controls as the asset is created or enhanced.

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

Control is transferred at a point in time if none of the criteria for a good or service to be
transferred over time are met. The Group considers the following factors in determining
whether control of an asset has been transferred:

▶ The Group has a present right to payment for the asset.
▶ The Customer has legal title to the asset.

▶ The Group has transferred physical possession of the asset.
▶ The Customer has the significant risks and rewards of ownership of the asset.

▶ The Customer has accepted the asset.
The Group recognizes contract liabilities for consideration received in respect of unsatisfied
performance obligations and reports these amounts as other liabilities in the consolidated
statement of financial position. Similarly, if the Group satisfies a performance obligation before
it receives the consideration, the Group recognizes either a contract asset or a receivable in its
consolidated statement of financial position, depending on whether something other than
the passage of time is required before the consideration is due.
Incremental costs of obtaining a contract with a customer are capitalized when incurred
as the Group expects to recover these costs and such costs would not have incurred if the
contract has not been obtained. Sales commission incurred by the Group is expensed as the
amortization period of such costs is less than a year.

Revenue for the Group arises from the following activities:
(i) Service revenue

Service revenue primarily comprises of stevedoring, haulage, equipment leasing, inventory

65 JTC LogisTiCs TransporTaTion & sTevedoring Company K.s.C.p.