Company’s rights to consideration are conditional on something other than the passage of time. A contract asset is subject to impairment in accordance to MFRS 9 ‘Financial Instruments’ (Note 45). Typically, the amount will be billed within 30 days of the supply of electricity for electricity customers and 60 to 180 days for satisfying the performance obligation for other revenue streams. An assessment of electricity supplied to customers between the date of the last meter reading and the financial year end of the Group and of the Company (unread and unbilled) was made and it is recognised as trade contract assets. Payment is expected within 30 days from the billing date for all trade receivables. NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 TENAGA NASIONAL BERHAD Integrated Annual Report2023 248 Accounting Policy (continued) (c) Trade contract liabilities A trade contract liability represents the obligation of the Group and of the Company to transfer goods or services to a customer for which consideration has been received (or the amount is due) from the customers. Trade contract liabilities primarily relate to contributions paid by electricity customers for the construction of electricity network assets. The customers’ contributions are expected to be recognised as revenue over a period of 20 years, being the estimated average useful life of the electricity network assets used to connect the customers to the electricity supply. Other trade contract liabilities within the Group are relating to students fees. All other trade contract liabilities are expected to be recognised as revenue over the next 12 months. (d) Non-trade contract assets and liabilities Non-trade contract balances are pertaining to insurance and reinsurance contracts which are recognised in accordance to MFRS 4 ‘Insurance Contracts’. These balances have been classified as receivables (Note 21) and payables (Note 23) respectively as at 1 January 2023 upon adoption of MFRS 17. 17 CONTRACT BALANCES (CONTINUED) The Group and the Company have