NOTES TO THE FINANCIAL STATEMENTS Registration No. 200301030845 (633265-K) - 101 - 14. Contract Assets/(Liabilities) 2021 2020 RM RM Current Contract assets Construction contract 97,298,184 174,252,861 Contract liabilities Construction contract 19,205,728 58,219,199 Group The significant changes in the contract assets and contract liabilities during the financial year relating to change in measure of construction progress. Construction contracts 2021 2020 RM RM Contract costs incurred to date 1,216,187,328 1,732,255,739 Attributable profits 107,022,715 105,506,012 1,323,210,043 1,837,761,751 Less: Progress billings (1,245,117,587) (1,721,728,089) 78,092,456 116,033,662 Presented as: Contract assets 97,298,184 174,252,861 Contract liabilities (19,205,728) (58,219,199) 78,092,456 116,033,662 Group 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. As of the reporting date, revenue expected to be recognised in the future relating to performance obligations that are unsatisfied (or partially unsatisfied) is RM14,543,110 (2020: RM230,419,533). The Group expects to recognise this revenue as the construction contracts are completed, which is expected to occur over the next 6-24 months. 178 DESTINI BERHAD • ANNUAL REPORT 2021
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