0.4 0 0 Club Memberships - Sultan Salahuddin Abdul Aziz Shah Club 0.1 0.1 0 0 - Glenmarie Golf Country Club 0.1 0.1 0 0 - Leisure Holidays Bhd 0.1 0.1 0 0 17 CONTRACT BALANCES Accounting Policy (a) Contract cost assets - Costs to fulfil a contract The Group recognises a contract cost that relates directly to a contract or to an anticipated contract as an asset when the cost generates or enhances resources of the Group which will be used in satisfying performance obligations in the future and it is expected to be recovered. These contract costs are initially measured at cost and amortised on a systematic basis that is consistent with the pattern of revenue recognition to which the asset relates. An impairment loss is recognisedin the statement of profit or loss when the carrying amount of the contract cost exceeds the expected revenue less expected cost that will be incurred. Where the impairment condition no longer exists or has improved, the impairment loss is reversed to the extent that the carrying amount of the contract cost does not exceed the amount that would have been recognised had there been no impairment loss recognised previously. (b) Trade contract assets A trade contract asset is recognised when the Group’s and the 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