Section 8 UEM Edgenta Berhad FINANCIAL STATEMENTS 334 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 23. CONTRACT RELATED ASSETS AND LIABILITIES (CONTD.) (a) Contract assets and liabilities (contd.) The increase in contract asset as at financial year ended 31 December 2023 was mainly due to the infrastructure services works performed towards the year-end. Contract 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. Set out below is the amount of revenue recognised from: Group 2023 RM’000 2022 RM’000 Amounts included in contract liabilities at the beginning of the year 19,396 14,235 (b) Contract fulfillment asset Group 2023 RM’000 2022 RM’000 As at 1 January 2,777 4,711 Utilised during the year (2,187) (1,934) As at 31 December 590 2,777 These costs relate to direct cost incurred to generate or enhance resources used in satisfying the contracts with customers and amortised on a straight-line basis over the period of the respective contracts. The amortisation period for these costs are between 4 to 5 years (2022: between 4 to 5 years).
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