DIGI - Annual Report 2021

Notes to the Financial Statements 31 December 2021 175 Integrated Annual Report 2021 Governance Audited Financial Statements Other Information 5. Revenue (CONT’D.) 5.2 Contract balances (Cont’d.) Contract assets primarily relate to rights to consideration for mobile devices transferred to subscribers but not billed at the reporting date. Contract assets are transferred to receivables when the rights become unconditional.As at 31 December 2021, the Group has contract assets of RM72.9 million (2020: RM95.3 million) which is net of an allowance for expected credit losses of RM4.5 million (2020: RM4.5 million). Contract liabilities mainly relate to advance consideration received from subscribers at inception of contracts, for which revenue is only recognised upon rendering of telecommunication service. All contract liabilities at the beginning of the financial year have been recognised as revenue in the current financial year. 5.3 Right of return asset and refund liabilities Group 2021 2020 RM’000 RM’000 Right of return assets - 36,740 Refund liabilities - (36,740) 5.4 Group as a lessor The Group has entered into operating leases on certain network telecommunication sites. These leases have lease terms between one to six years. Lease income recognised by the Group during the financial year is RM95.3 million (2020: RM83.8 million). The future minimum rentals receivable under non-cancellable operating leases are as follows: 2021 2020 RM’000 RM’000 Within one financial year 85,967 79,962 After one financial year but not more than five financial years 182,956 224,029 More than five financial years 24,431 21,439 293,354 325,430

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