are classified as current assets. If not, they are presented as non-current assets. Trade and other receivables are recognised initially at fair value, which is the amount of consideration that is unconditional unless they contain significant financing components. The Group and the Company hold the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost less accumulated impairment losses. The impairment is determined based on the ECL model and is further disclosed in Note 45. Insurance contracts Reinsurance contracts - initial recognition The Group applies the premium allocation approach (‘PAA’) to all the reinsurance contracts it holds, as: • The coverage period of each contract in the group is one year or less, including insurance contract services arising from allpremiums within the contract boundary; or • For contracts longer than one year, the Group has modelled possible future scenarios and reasonably expects that the measurement of the liability for remaining coverage for the Group containing those contracts under the PAA does not differ materially from the measurement that would be produced applying the general model. In assessing materiality, the Group has also considered qualitative factors such as the nature of the risk and types of its lines of business. Group Company 2023 RM’million 2022 RM’million 2023 RM’million 2022 RM’million Fuel and consumables 2,736.8 3,274.9 278.7 331.0 Work-in-progress 14.4 10.3 0 0 Finished goods 6.8 5.6 0 0 2,758.0 3,290.8 278.7 331.0 21 RECEIVABLES, DEPOSITS AND PREPAYMENTS NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 TENAGA NASIONAL BERHAD Integrated Annual Report 2023 254 Accounting Policy (continued) Insurance contracts (continued) Reinsurance contracts - initial recognition (continued) For a group of contracts that is not onerous at initial recognition, the Group measures the liability for remaining coverage as: • The premiums, if any, received at initial recognition; • Minus any