Registration No. 200301030845 (633265-K) - 98 - 11. Contract Assets/(Liabilities) (Cont’d) The significant changes in the contract assets and contract liabilities during the financial year relate to changes in the measure of progress of performance obligations under contracts for supply of goods and services. Service contracts Contract assets represent the right to consideration in exchange for goods or services transferred to the customer. If the Group performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional. 2026 2025 RM RM Contract assets At 1 July 31,864,976 408,172 financial year 210,302,254 31,864,976 (171,258,197) (408,172) At 30 June 70,909,033 31,864,976 Group Service contracts revenue recognised during the Less: Progress billing during the financial year A contract liability is recognised when the Group bills in advance to customers for supply of goods or services and subsequently released to revenue recognised when the corresponding stage of completion is achieved. 2026 2025 RM RM Contract liabilities At 1 July 14,448,341 8,205,942 (14,448,341) (8,205,942) 3,863,438 14,448,341 At 30 June 3,863,438 14,448,341 Revenue recognised that was included in the contract liability balance at the beginning of the year Increases due to cash received, excluding amounts recognised as revenue during the year Group As of the reporting date, revenue expected to be recognised in the future relating to performance obligations that are unsatisfied (or partially unsatisfied) is RM3,863,438 (2025: RM14,448,341). Included in contract assets is RM59,489,632 (2025: RM24,939,739) arising from MRO contracts with the Ministry of Transport Malaysia. DESTINI BERHAD 211 ANNUAL REPORT 2026
RkJQdWJsaXNoZXIy NDgzMzc=