MISC Annual Report 2019

3. REVENUE (CONT’D.) Contract balances (cont’d.) Amount due from customers on contracts primarily relates to the Group’s rights to consideration for work completed but not billed at the reporting date. Amount due from customers on contracts are transferred to receivables when rights become unconditional. Amount due to customers on contracts primarily relate to the advance consideration received (or an amount of consideration is due) from the customer, for which revenue is recognised over time when the Group progressively satisfies its performance obligation. Transaction price allocated to the remaining performance obligations The following table shows revenue expected to be recognised in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the reporting date. The disclosure is only providing information for contracts that have a duration of more than one year. Under 1 year 1-5 years Total RM’000 RM’000 RM’000 Group Construction contract and marine repair 1,555,990 1,347,323 2,903,313 Non-shipping income 108,397 222,051 330,448 Total 1,664,387 1,569,374 3,233,761 4. OTHER OPERATING INCOME Group Corporation 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Rental income 81 133 – – Exchange gain: Realised 15 1,266 – 1,452 Unrealised 7,485 21,885 8,789 13,941 Management services: Subsidiaries – – 2,053 3,537 Joint ventures 4,722 4,443 4,722 4,443 Gain on disposal of other property, plant and equipment – 96 – – Gain from liquidation of a subsidiary – – 151,869 – Dividend income from equity investment: Subsidiaries – – 1,283,518 936,549 Joint ventures – – 207,769 214,800 Quoted equity investments 1,562 1,707 1,693 1,707 Unquoted equity investments 10 8 10 8 Writeback of impairment loss on: (Note 21) - Trade and other receivables – 621 – – - Finance lease receivables 5,455 – 369 – Student course fees 13,718 12,041 – – Miscellaneous income from: Subsidiaries – – 7,290 6,891 Fellow subsidiaries 43,987 10,432 1,568 61 Third parties 41,818 75,975 23,415 29,810 118,853 128,607 1,693,065 1,213,199 5. PROFIT BEFORE TAXATION The following amounts have been included in arriving at profit before taxation: Group Corporation 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Amortisation of intangible assets (Note 15) 6,373 5,392 – – Intangible assets written off (Note 15) – 721 – – Amortisation of prepaid lease payments on land and buildings (Note 14) 7,405 7,216 124 121 Auditors’ remuneration: Auditors of the Corporation: - Statutory audits 4,423 4,184 824 788 - Other services 1,119 1,465 886 1,283 Inventories used (Note 20) 915,284 922,861 – – Fair value movement in other investments 5,175 15,120 5,175 15,120 Exchange loss: - Realised 19,669 16,066 14,902 4,992 - Unrealised 9,121 1,529 5,357 4,444 Impairment loss for: (Note 21) - Trade and other receivables 36,839 139,237 22,019 133,327 - Finance lease receivables – 2,062 – 7,662 Bad debts written off 1,065 10,426 524 – Operating lease rental:* - Ships 257,384 719,985 – – - Equipment 10,462 32,931 548 3,694 - Land and buildings 27,916 71,877 3,787 17,644 Ships, offshore floating assets, other property, plant and equipment and right-of-use assets: (Note 13) - Depreciation 2,215,528 1,891,896 365,692 348,426 - Written off 13,189 32,455 525 4,377 Impairment provisions (Note 5(a)) 214,943 99,036 101,407 91,591 Staff costs (Note 6) 1,765,161 1,610,924 243,914 150,257 Non-executive directors’ remuneration (Note 7) 1,567 1,511 1,039 993 * The Group leases ships, equipment, land and buildings. These leases are short term and/or leases of low-value assets. The Group has elected not to recognise right-of-use assets and lease liabilities for these leases. NOTES TO THE FINANCIAL STATEMENTS 31 December 2019 NOTES TO THE FINANCIAL STATEMENTS 31 December 2019 FINANCIAL STATEMENTS MISC BERHAD PEOPLE. PASSION. POSSIBILITIES ANNUAL REPORT 2019 282 283