Sasbadi Annual Report 2020

107 ANNUAL REPORT 2020 FINANCIAL STATEMENTS (continued) 10. Inventories Group 2020 2019 RM’000 RM’000 At cost/net realisable value Raw materials 3,757 5,865 Finished goods 65,629 67,581 69,386 73,446 Recognised in profit or loss: Inventories recognised as cost of sales 27,802 23,945 Write down of inventories 5,293 2,996 11. Rights to recover returned goods/(Refund liabilities) Group 2020 2019 RM’000 RM’000 Rights to recover returned goods 1,283 2,035 Refund liabilities (2,414) (3,851) An asset with a right to recover returned goods and the corresponding refund liabilities are recognised in relation to finished goods sold with a right of return. These are measured by reference to the former carrying amounts of the sold inventories less any expected costs to recover those inventories and any potential decreases in the value to the Group of the returned inventories. 12. Contract with customers 12.1 Contract costs Group 2020 2019 RM’000 RM’000 Cost to obtain a contract 597 381 Cost to obtain a contract primarily comprises commission fees paid to intermediaries as a result of obtaining contracts and they are recoverable. Capitalised commission fees are amortised when the related revenues are recognised. During the current financial year, the amount of amortisation was RM1,159,000 (2019: RM1,930,000).