Kimlun Corporation Berhad Annual Report 2018

3. Significant accounting judgements and estimates (cont'd) 3.2 Key sources of estimation uncertainty (cont'd) (d) Deferred tax assets Deferred tax assets are recognised for all unused tax credits to the extent that it is probable that taxable profit will be available against which the unused tax credits (primarily investment tax allowances and capital allowances) can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and level of future taxable profits together with future tax planning strategies. (e) Provision for expected credit loss of trade and other receivables The Group uses a provision matrix to calculate ECLs for trade and other receivables. The provision matrix is initially based on the Group’s historical observed default rates. The Group will calibrate the matrix to adjust the historical credit loss experience with available, reasonable and supportable forward-looking information. The Group considers the probability of default upon initial recognition of an asset and whether there has been significant increase in credit risk on an on-going basis throughout each reporting period. 4. Revenue (a) Revenue from contracts with customers Group 2018 2017 RM RM Types of goods and services Sales of concrete products 194,934,130 89,743,501 Sales of building material 11,337,406 8,222,228 Sales of completed properties 4,536,000 15,034,632 Sales of development properties - 794,823 Construction contracts 801,122,216 871,096,495 1,011,929,752 984,891,679 Timing of revenue recognition Transferred over time 801,122,216 871,891,318 Transferred at a point in time 210,807,536 113,000,361 1,011,929,752 984,891,679 (b) Contract assets and contract liabilities Information about receivables, contract assets and contract liabilities from contracts with customers is disclosed as follows: Group 2018 2017 RM RM Receivables from contracts with customers (Note 20) 391,142,179 395,878,583 Contract assets 336,471,863 233,896,832 Contract liabilities (3,588,794) (31,019,617) Contract assets primarily relate to the Group's right to consideration for work completed but not yet billed at the reporting date. Contract assets are transferred to receivables when the rights become unconditional. Contract liabilities primarily relate to the Group's billings in advance at the reporting date. Contract liabilities are reversed and revenue is recognised as work is completed. Kimlun Corporation Berhad 89 NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2018 (cont’d)