NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) C13 Contract balances The following table provides information about contract assets and contract liabilities from contracts with customers. Group 2024 2023 2022 $’000 $’000 $’000 Contract assets 2,567,423 2,240,100 2,099,676 Contract liabilities (2,793,017) (2,252,967) (1,817,927) The timing of revenue recognition, billings and cash collections results in billed accounts receivable (included in trade receivables), unbilled receivables (contract assets), and customer advances (contract liabilities) on the statement of financial position. The contract assets primarily relate to the Group’s rights to consideration for work completed but not billed at the reporting date. If the value of services rendered exceeds payments received from the customer, a contract asset is recognised and presented separately. Costs to fulfil are recognised in profit and loss when the related revenue is recognised. The contract asset is transferred to receivables when the entitlement to payment becomes unconditional. Contract assets include costs to fulfil of $879,755,000 (2023: $769,031,000). Costs to fulfil of $1,699,786,000 (2023: $1,602,067,000) were recognised in profit and loss during the year. The contract liabilities primarily relate to advance consideration received from customers for contract revenue. If the amounts invoiced to the customer exceed the value of services rendered, a contract liability is recognised and presented separately. These assets and liabilities are reported on the statement of financial position on a contract-by-contract basis at each reporting date. The contract assets balance increased as the Group provided more services and transferred more goods ahead of the agreed payment schedules. The contract liabilities increased due to more consideration received by the Group ahead of the provision of services and goods. Revenue recognised in relation to contract liabilities Group 2024 2023 $’000 $’000 Revenue recognised that was included in the contract liability balance at the beginning of the year 631,774 816,520 183 CORPORATE OVERVIEW PERFORMANCE REVIEW SUSTAINABILITY FINANCIAL REPORT
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