DESTINI Annual Report 2020

Group 2020 2019 RM RM Contract costs incurred to date 1,732,255,739 1,107,640,955 Attributable profits 105,506,012 126,379,525 1,837,761,751 1,234,020,480 Less: Progress billings (1,721,728,089) (1,222,752,516) 116,033,662 11,267,964 Presented as: Contract assets 174,252,861 17,513,244 Contract liabilities (58,219,199) (6,245,280) 116,033,662 11,267,964 14. Contract Assets/(Liabilities) (Cont’d) Construction contracts The contract assets represent the unbilled amount for work completed as at the reporting date. This amount will be transferred to trade receivables when the right to bill becomes unconditional. The contract liabilities consist of advance billings in excess of revenue recognised overtime during the construction period. During the financial year, the following costs are capitalised to costs: Group 2020 2019 RM RM Short term lease expenses relating to : - plant and machineries - 1,827,548 - others - 222,560 As of the reporting date, revenue expected to be recognised in the future relating to performance obligations that are unsatisfied (or partially unsatisfied) is RM230,419,533 (2019: RM285,859,977. The Group expects to recognise this revenue as the construction contracts are completed, which is expected to occur over the next 12-24 months. ANNUAL REPORT 2020 DESTINI BERHAD Notes to Financial Statements 150