222 MKH BERHAD | ANNUAL REPORT 2023 23. CONTRACT ASSETS AND CONTRACT LIABILITIES (CONT’D) The transaction price allocated to the unsatisfied performance obligations as at 30 September 2023 is RM841,187,269 (2022: RM906,152,601). The remaining performance obligations are expected to be recognized within the remaining 4 years (2022: 4 years). There was no impairment loss recognized on contract assets at the reporting date. 24. CONTRACT COST ASSETS The Group 2023 2022 RM RM At beginning of year 28,236,676 31,741,195 Additions during the year 18,164,382 12,278,957 Amortised during the year (Note 5) (19,783,677) (15,783,476) At end of year 26,617,381 28,236,676 Contract costs consist of sales commission and agency fees paid to intermediaries to secure contracts with customers. These costs are subsequently expensed off as cost of sales by reference to the performance completed to date, consistent with the revenue recognition pattern. There was no impairment loss in relation to the cost capitalised. 25. BIOLOGICAL ASSETS The Group 2023 2022 RM RM Net Book Value At beginning of year 5,917,360 6,177,026 Changes in fair value (Note 6) 288,344 (577,142) Effect of movements in exchange rate 25,688 317,476 At end of year 6,231,392 5,917,360 The biological assets of the Group comprise fresh fruit bunches (“FFB”) prior to harvest. Management has considered FFB less than 15 days before harvesting in the calculation of fair value. FFB more than 15 days before harvesting are excluded from the valuation as their fair values are considered negligible. The fair value measurement of the biological assets is valued using present value of net cashflows expected to be generated from the sale of FFB, adjusted for estimated oil content of unharvested FFB, less harvesting, transport and other costs to sell and is categorised within Level 2 of the fair value hierarchy is disclosed in Note 46. During the financial year, the Group harvested approximately 410,230 metric tonnes (“MT”) of FFB (2022: 382,752 MT). NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2023
RkJQdWJsaXNoZXIy NDgzMzc=