NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2025 24. CONTRACT ASSETS AND CONTRACT LIABILITIES The Group 2025 2024 RM RM Contract assets 173,272,251 293,775,202 Contract liabilities (2,222,434) (13,950,359) Net 171,049,817 279,824,843 At beginning of year 279,824,843 318,131,959 Consideration paid/payable to customers 62,738,690 31,252,774 Revenue recognised during the year (Note 4) 468,443,274 579,304,751 Progress billing during the year (639,956,990) (648,864,641) At end of year 171,049,817 279,824,843 Revenue from property development activities is recognised over time using the input method, which is based on the actual cost incurred to date on the property development project as compared to the total budgeted cost for the respective development projects. The transaction price allocated to the unsatisfied performance obligations as at 30 September 2025 is RM471,335,988 (2024: RM547,257,479). The remaining performance obligations are expected to be recognised within the remaining 4 years (2024: 4 years). There was no impairment loss recognised on contract assets at the reporting date. 25. CONTRACT COST ASSETS The Group 2025 2024 RM RM At beginning of year 16,296,324 26,617,381 Additions during the year 16,276,867 8,210,222 Amortised during the year (Note 5) (15,312,031) (18,531,279) At end of year 17,261,160 16,296,324 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. PG | 258 ANNUAL REPORT 2025 MKH BERHAD
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