2020 UEM Edgenta Annual Report

20. TRADE AND OTHER RECEIVABLES (CONTD.) b. Other receivables (contd.) Other receivables that are impaired A t the reporting date, the Group and the Company have provided an allowance of RM2.5 million (2019: RM3.0 million) and RM27.7 million (2019: RM25.4 million) respectively. These mainly relate to balances due from third parties and subsidiaries respectively which have been long outstanding. c. Concession receivable T his is in relation to a concession arrangement in which the Group provides retro-fitting works and upgrades of infrastructure to turn existing buildings into green buildings. These amounts are to be repaid over the remaining period of the concession. These amounts are also pledged as security for the borrowing obtained for this concession as disclosed in Note 27(b). 21. CONTRACT RELATED ASSETS AND LIABILITIES Group RM’000 2020 2019 Contract assets (a) Non-current 60,957 32,941 Current 290,743 344,037 351,700 376,978 Contract liabilities (a) Current (30,663) (21,131) Contract fulfillment asset (b) Non-current 6,794 2,271 Current 2,608 699 9,402 2,970 a. Contract assets and liabilities C ontract assets are initially recognised for revenue earned from services transferred which receipt of the consideration is conditional on the completion and final acceptance by customers. Upon final acceptance by the customers, the amounts recognised as contract assets becomes unconditional and are reclassified to trade receivables. T he increase in contract asset as at financial year ended 31 December 2020 was mainly due to unbilled receivables pertaining to revenue earned for infrastructure services provided during the year. C ontract liabilities include billings made in advance which represent amounts where customers have been invoiced ahead of the satisfaction of the performance obligation by the Group. UEM EDGENTA BERHAD 258 Financial Statements NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020