Annual Report - Bina Puri

Notes to and Forming Part of the Financial Statements (Cont’d)
14. GROSS AMOUNTS DUE FROM/TO CUSTOMERS
Group
Company
2008 2007 2008 2007
RM'000 RM'000 RM'000 RM'000
Cost of contracts 1,138,258 972,143 64,815 30,867
Attributable profit recognised to date 65,797 51,122 1,558 1,169
1,204,055 1,023,265 66,373 32,036
Less:
Progress billings (1,140,508) (929,260) (68,906) (29,429)
63,547 94,005 (2,533) 2,607
Represented by:
Gross amount due from customers 69,359 94,265 72 2,607
Gross amount due to customers (5,812) (260) (2,605) –
63,547 94,005 (2,533) 2,607
Retention sums receivable from customers included
in trade receivables (Note 15) 35,106 38,529 3,685 2,943
Advances received for contract work not yet
performed included in other payables (Note 26) 32,539 19,062 47 47
Revenue recognition of construction contracts
The Group recognises construction contracts based on the percentage of completion method. The stage of
completion of the construction contracts is measured in accordance with the accounting policy set out in Note
1(p).
Significant judgement is required in determining the percentage of completion, the extent of the contract costs
incurred, the estimated total revenue and total costs and the recoverability of the contract. In making this
judgement, the management relies on the current economic situation and the prevailing market condition and
estimates provided by third parties.
BINA PURI HOLDINGS BHD
Annual Report 2008
85