Dagang NeXchange Berhad Annual Report 2019

FINANCIAL STATEMENTS annual report 2019 149 12. CONTRACT ASSETS/(LIABILITIES) Group 2019 2018 RM’000 RM’000 Contract assets Contract assets relating to contracts with customers 83,506 76,985 Less: Impairment loss (59) (50) 83,447 76,935 Contract liabilities Contract liabilities relating to contracts with customers (5,317) (953) (a) The contract assets primarily relate to the Group’s right to consideration for work completed and services provided on contracts but not yet billed as at the reporting date. The amount will be invoiced within 6 (2018: 6) months. (b) The contract liabilities primarily relate to the advance consideration received from customers for services, which revenue is recognised overtime during the service provision. The contract liabilities are expected to be recognised as revenue over a period of 9 (2018: 9) months. (c) Significant changes to contract assets and contract liabilities balances during the period are as follows: Group 2019 2018 RM’000 RM’000 Contract liabilities at the beginning of the period not recognised as revenue due to change in time frame 953 - Contract assets at the beginning of the period not transferred to trade receivables due to change in time frame 76,985 18,067 Changes in contract assets due to business combinations during the period - 49,255 Billings to customer during the financial year 89,219 134,205 13. TRADE AND OTHER RECEIVABLES Group Company Note 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Trade Trade receivables 58,318 82,232 - - Less: Impairment loss (5,973) (7,842) - - 52,345 74,390 - -