DESTINI Annual Report 2018

Group 2018 2017 RM RM Contract costs incurred to date 1,105,018,555 877,397,698 Attributable profits 179,294,706 163,625,682 1,284,313,261 1,041,023,380 Less: Progress billings (1,241,016,021) (1,048,449,334) 43,297,240 (7,425,954) Presented as: Contract assets 49,775,224 10,683,825 Contract liabilities (6,477,984) (18,109,779) Group 2018 2017 RM RM Hire of plant and machineries 643,731 840,116 Rental expenses 50,553 77,871 As of the reporting date, revenue expected to be recognised in the future relating to performance obligations that are unsatisfied (or partially unsatisfied) is RM295,256,032. The Group expects to recognise this revenue as the construction contracts are completed, which is expected to occur over the next 12-24 months. 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: DESTINI BERHAD ANNUAL REPORT 2018 161