ENRA Group Berhad Annual Report 2021

FINANCIAL STATEMENTS & OTHERS ENRA Group Berhad | Annual Report 2021 142 NOTES TO THE FINANCIAL STATEMENTS 31 MARCH 2021 14. CONTRACT ASSETS Group 2021 2020 RM’000 RM’000 Non-current Contract assets 390 – Current Contract assets 3,259 – 3,649 – (a) 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 typically within 30 days to 90 days. Contract liabilities are recognised as revenue when performance obligations are satisfied. Group 2021 2020 RM’000 RM’000 Balance at beginning of financial year – – Revenue recognised 48,643 – Billings (44,994) – Balance at end of financial year 3,649 – Revenue expected to be recognised in the future relating to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period, are as follows: Group 2022 RM’000 31 March 2021 4,142 (b) Impairment for contract assets that do not contain a significant financing component are recognised based on the simplified approach using the lifetime expected credit losses as disclosed in Note 13(f) to the financial statements. (c) No expected credit loss was recognised arising from the contract asset of the Group as it is negligible.