Notes To The Financial Statements 31 March 2024 (Cont’d) 143 FINANCIAL STATEMENTS & OTHERS 11. CONTRACT ASSETS/(CONTRACT LIABILITIES) Group 2024 2023 RM’000 RM’000 Contract assets Non-current - 168 Current 2,850 1,140 2,850 1,308 Contract liabilities Current (185) (1,192) (a) Contract assets represent the timing differences in revenue recognition and the milestone billings. The milestone billings are structured and/or negotiated with customers to reflect physical completion of the contracts. Contract assets are transferred to receivables when the rights to economic benefits become unconditional. This usually occurs when the Group issues billing to the customer typically within 30 days to 90 days. Contract liabilities are recognised as revenue when performance obligations are satisfied. (b) Revenue expected to be recognised in the future relating to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period, are as follows: Group 2024 2023 RM’000 RM’000 31 March 2025 9,670 - 31 March 2024 - 110 9,670 110 (c) Impairment for contract assets that do not contain a significant financing component are recognised based on the simplified approach using the lifetime expected credit losses as disclosed in Note 10(e) to the financial statements. No expected credit loss was recognised arising from the contract asset of the Group as it is negligible.
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