Serba Dinamik Annual Report 2019

271 11. CONTRACT BALANCES - GROUP 2019 2018 RM’000 RM’000 Group Contract assets 321,558 61,177 ========= ========= Contract liabilities ( 35,736) ( 18,559) ========= ========= 11.1 Contract assets/(liabilities) The contract assets primarily relate to the Group’s rights to consideration for work completed but not yet billed at the reporting date. Typically, the amount will be billed within 30 days and payment is expected within 90 to 120 days. The contract liabilities primarily relate to the advance consideration received from customers for construction contract, which revenue is recognised overtime during the construction period. Significant changes to contract assets and contract liabilities balances during the period are as follows: 2019 2018 RM’000 RM’000 Group Contract assets at the beginning of the period not transferred to trade receivables due to change in time frame ( 53,786) ( 40,540) =========== =========== 11.2 Impairment assessment on contract assets Credit risk on contract assets arose from O&M and EPCC projects undertaken by the Group. As at end of the reporting period, the maximum exposure to credit risk arising from contract assets is represented by the carrying amount in the statement of financial position. Management has taken reasonable steps to ensure the contract assets are not credit impaired. N O T E S T O T H E F I N A N C I A L S TAT E M E N T S