ENRA Group Berhad | Annual Report 2022 131 NOTES TO THE FINANCIAL STATEMENTS 31 MARCH 2022 12. CONTRACT ASSETS/(CONTRACT LIABILITIES) Group 2022 2021 RM’000 RM’000 Contract assets Non-current 276 390 Current 1,046 3,259 1,322 3,649 Contract liabilities Current (962) – (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. (b) There were no significant changes in the contract assets and liabilities during the financial year other than the following: Group 2022 2021 Note RM’000 RM’000 Contract asset not transferred to trade receivables due to disposal of subsidiary 6 107 – (c) 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 2021 RM’000 RM’000 31 March 2023 1,189 – 31 March 2022 – 4,142 1,189 4,142 (d) 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 11(f) to the financial statements. No expected credit loss was recognised arising from the contract asset of the Group as it is negligible.
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