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Notes to the
financial statements
For the financial year ended 31 December 2018
100
B A K E R T E C H N O L O G Y
L I M I T E D
5.
Revenue (cont’d)
Contract assets and contract liabilities
Information about receivables contract assets and contract liabilities from contracts with customers
is disclosed as follows:
Group
31.12.2018
31.12.2017
1.1.2017
$’000
$’000 $’000
Receivables from contracts with customers (Note 18)
21,323
1,702
4,132
Contract assets
1,071
61
1,039
Contract liabilities
–
104
122
The Group has recognised impairment losses on receivables arising from contracts with customers
amounting to $329,000 (2017: $63,000).
Contract assets primarily relate to the Group’s right to consideration for work completed but not
yet billed at reporting date for specialised equipment constructions contracts. Contract assets are
transferred to receivables when the rights become unconditional.
Contract liabilities primarily relate to the Group’s obligation to transfer goods or services to
customers for which the Group has received advances received from customers for the manufacturing
of specialised marine offshore equipment for the oil and gas industry.
Contract liabilities are recognised as revenue as the Group performs under the contract.
Significant changes in contract assets are explained as follows:
Group
31.12.2017
1.1.2017
$’000 $’000
Contract assets written down
506
–