DESTINI Annual Report 2019

NOTES TO THE FINANCIAL STATEMENTS Group 2019 2018 RM RM Contract costs incurred to date 1,107,640,955 1,105,018,555 Attributable profits 126,379,525 179,294,706 1,234,020,480 1,284,313,261 Less: Progress billings (1,222,752,516) (1,241,016,021) 11,267,964 43,297,240 Presented as: Contract assets 17,513,244 49,775,224 Contract liabilities (6,245,280) (6,477,984) 11,267,964 43,297,240 15. 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 2019 2018 RM RM Short term lease expenses relating to : - plant and machineries 1,827,548 643,731 - others 222,560 50,553 As of the reporting date, revenue expected to be recognised in the future relating to performance obligations that are unsatisfied (or partially unsatisfied) is 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. FINANCIAL STATEMENTS 06 ANNUAL REPORT 2019 157