Notes to the Financial Statements Registration No. 200301030845 (633265-K) - 98 - 14. Contract Assets/(Liabilities) (Cont’d) The significant changes in the contract assets and contract liabilities during the financial year relating to change in measure of construction progress. Construction contracts 2022 2021 RM RM Contract costs incurred to date - 1,213,838,884 Attributable profits - 107,022,715 - 1,320,861,599 Less: Progress billings (1,245,117,587) - 75,744,012 Presented as: Contract assets - 94,949,740 Contract liabilities - (19,205,728) - 75,744,012 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 RMNil (2021: RM14,543,110). Service contracts Contract assets represent the right to consideration in exchange for goods or services transferred to the customer. If the Group performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional. 176 DESTINI BERHAD ANNUAL REPORT 2022
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