2019 UEM Edgenta Annual Report

217 UEM EDGENTA AT A GLANCE MESSAGE FROM OUR LEADERSHIP STRATEGIC FOCUS OPERATIONAL REVIEW SUSTAINABILITY EFFORTS CORPORATE GOVERNANCE INTRODUCTION FINANCIAL REVIEW ADDITIONAL INFORMATION Notes to the Financial Statements For the year ended 31 December 2019 UEM Edgenta Berhad Annual Report 2019 22. CONTRACT RELATED ASSETS AND LIABILITIES Group 2019 RM’000 2018 RM’000 Contract assets (a) Non-current 32,941 20,088 Current 344,037 179,758 376,978 199,846 Contract liabilities (a) Current (21,131) (14,368) Contract fulfillment asset (b) Non-current 2,271 - Current 699 - 2,970 - (a) Contract assets and liabilities Contract assets are initially recognised for revenue earned from services transferred which receipt of the consideration is conditional on the completion and final acceptance by customers. Upon final acceptance by the customers, the amounts recognised as contract assets becomes unconditional and are reclassified to trade receivables. The increase in contract asset as at financial year ended 31 December 2019 was mainly due to unbilled receivables pertaining to revenue earned for infrastructure services provided during the year. Contract liabilities include billings made in advance which represent amounts where customers have been invoiced ahead of the satisfaction of the performance obligation by the Group. Set out below is the amount of revenue recognised from: Group 2019 RM’000 2018 RM’000 Amounts included in contract liabilities at the beginning of the year 2,713 27,762 (b) Contract fulfillment asset 2019 RM’000 As at 1 January - Additions 3,494 Utilised during the year (524) As at 31 December 2,970