ENRA Group Berhad Annual Report 2019

107 ENRA GROUP BERHAD ∞ Annual Report 2019 page Notes to the Financial Statement 31 March 2019 13. TRADE AND OTHER RECEIVABLES (cont’d) (i) In the previous financial year, included in the trade receivables were amounts to be set off against with the purchasers of the investment properties of approximately RM3,000,000. (j) Impairment for other receivables are recognised based on the general approach within MFRS 9 using the forward looking expected credit loss model. The methodology used to determine the amount of the impairment is based on whether there has been a significant increase in credit risk since initial recognition of the financial asset. At the end of the reporting period, the Group assessed whether there has been a significant increase in credit risk for financial assets by comparing the risk of default since initial recognition. For those in which the credit risk has not increased significantly since initial recognition of the financial asset, twelve-months expected credit losses along with gross interest income are recognised. For those in which credit risk has increased significantly, lifetime expected credit losses along with the gross interest income are recognised. For those that are determined to be credit impaired, lifetime expected credit losses along with interest income on a net basis are recognised. No expected credit loss is recognised arising from other receivables of the Group and the Company as it is negligible. (k) Information on financial risks of trade and other receivables is disclosed in Note 42 to the financial statements. 14. CONTRACT ASSETS Group 2019 RM’000 2018 RM’000 Aggregate pre-contract costs incurred to date 2,387 28,217 Add: Attributable (loss)/profit (19) 7,155 2,368 35,372 Less: Progress billings (2,368) (29,395) - 5,977 Contract assets represent the timing differences in revenue recognition and the milestone billings. The milestone billings are structured and/or negotiated with customers to reflect physical completion of the contracts. Contract assets are transferred to receivables when the rights to economic benefits become unconditional. This usually occurs when the Group issues billing to the customer. Contract liabilities are recognised as revenue when performance obligations are satisfied. No impairment is required as the amount is negligible. There was no contract assets and liabilities during the financial year. 15. DERIVATIVE ASSETS 2019 2018 Group/Company Contract/ Notional amount RM’000 Fair value of derivatives RM’000 Contract/ Notional amount RM’000 Fair value of derivatives RM’000 Current Forward foreign currency selling contracts 30,421 512 44,562 111