22. TRADE AND OTHER RECEIVABLES (CONTD.) (b) Other receivables Amounts due from subsidiaries and related parties As at 31 December 2022, amounts due from subsidiaries are non-trade related, repayable on demand and bears interest ranging between 3.76% to 3.83% per annum. In the previous financial year, only amounts due from subsidiaries amounted to RM34.6 million bear interest ranging between 3.76% to 5.00% per annum, whilst the remaining amounts due from subsidiaries were non-interest bearing. All related companies balances are repayable on demand, unsecured and are to be settled in cash. Further details on related party transactions are disclosed in Note 39. Other receivables that are impaired At the reporting date, the Group and the Company have provided an allowance of RM3.0 million (2021: RM2.7 million) and RM12.7 million (2021: RM29.2 million) respectively. (c) Concession receivable This is in relation to a concession arrangement in which the Group provides retro-fitting works and upgrades of infrastructure to turn existing buildings into green buildings. These amounts are to be repaid over the remaining period of the concession. These amounts are also pledged as security for the borrowing obtained for this concession as disclosed in Note 35(a). 23. CONTRACT RELATED ASSETS AND LIABILITIES Group 2022 RM’000 2021 RM’000 Contract assets (a) Non-current 73,109 75,078 Current 357,174 309,551 430,283 384,629 Contract liabilities (a) Current (30,777) (30,312) Contract fulfillment asset (b) Non-current 547 2,616 Current 2,230 2,095 2,777 4,711 23. CONTRACT RELATED ASSETS AND LIABILITIES (CONTD.) (a) Contract assets and liabilities Contract assets are initially recognised for revenue earned from services transferred which receipt of the consideration is conditional on the completion and final acceptance by customers. Upon final acceptance by the customers, the amounts recognised as contract assets becomes unconditional and are reclassified to trade receivables. The increase in contract asset as at financial year ended 31 December 2022 was mainly due to the infrastructure services works performed towards the year-end. Contract liabilities include billings made in advance which represent amounts where customers have been invoiced ahead of the satisfaction of the performance obligation by the Group. Set out below is the amount of revenue recognised from: Group 2022 RM’000 2021 RM’000 Amounts included in contract liabilities at the beginning of the year 14,235 5,578 (b) Contract fulfillment asset Group 2022 RM’000 2021 RM’000 As at 1 January 4,711 9,402 Additions – 2,128 Utilised during the year (1,934) (6,819) As at 31 December 2,777 4,711 These costs relate to direct cost incurred to generate or enhance resources used in satisfying the contracts with customers and amortised on a straight-line basis over the period of the respective contracts. The amortisation period for these cost is between 4 to 5 years. p.334 p.335 UEM EDGENTA BERHAD INTEGRATED ANNUAL REPORT 2022 1 2 3 4 5 6 7 8 9 FINANCIAL STATEMENTS Notes to the financial statements For the year ended 31 December 2022 Notes to the financial statements For the year ended 31 December 2022
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