FGV Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 318 FGV HOLDINGS BERHAD EXAMINED OUR NUMBERS 53 CONTRACT LIABILITIES Group 2018 RM’000 2017 RM’000 Contract liabilities At 1 January 58,714 44,635 Revenue recognised that was included in the contract liability balance at the beginning of financial period (58,337) (44,435) Cash received 40,832 58,514 At 31 December 41,209 58,714 Revenue recognised in relation to contract liabilities: The following table shows how much of the revenue recognised in the current reporting period relates to carried-forward contract liabilities. Group 2018 RM’000 2017 RM’000 Revenue recognised that was included in the contract liability balance at the beginning of the period - Sales of palm products 32,882 5,357 - Sales of other commodities and by-products 16,529 17,295 - Provision of services 5,714 4,008 - Construction contract 606 13,737 - Others 2,606 4,038 58,337 44,435 The aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting date, of which the Group expects to recognise is RM41,209,000 (2017: RM58,714,000). All other contracts are for periods of one year or less or are billed based on time incurred. As permitted under MFRS 15, the Group applied the practical expedient in MFRS 15 and did not disclose information about recognising performance obligations that have original expected duration of one year or less.