Dagang NeXchange Berhad Annual Report 2023

12. CONTRACT ASSETS/(LIABILITIES) (CONTINUED) Group 31.12.2023 RM’000 30.6.2022 RM’000 Contract liabilities At 1 July (563,725) (1,845) Contract liabilities at the beginning of financial period/year recognised as revenue 29,486 1,845 Performance obligations performed 1,310 336 Cash received/amounts billed for unfulfilled performance obligations (71,685) (564,061) At 31 December/30 June (604,614) (563,725) (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 transferred to trade receivables when the Group issues billing in the manner as established in the contracts with customers. (b) The contract liabilities primarily relate to the advance consideration received from customers. The amount will be recognised as revenue when the performance obligations are satisfied. The contract liabilities are expected to be recognised as revenue over a period of 5 years (30.6.2022: 5 years). Integrated Report 2023 249

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