FGV Audited Financial Statements 2020

53 CONTRACT LIABILITIES Group 2020 RM’000 2019 RM’000 Contract liabilities At 1 January 77,623 41,209 Revenue recognised that was included in the contract liability balance at the beginning of financial period (63,222) (39,010) Cash received/amount billed for unfulfilled obligations 89,767 75,424 At 31 December 104,168 77,623 Revenue recognised in relation to contract liabilities: The following table shows how much of the revenue recognised in the current reporting period relates to carried-forward contract liabilities. Group 2020 RM’000 2019 RM’000 Revenue recognised that was included in the contract liability balance at the beginning of the period - Sales of palm products 41,651 21,166 - Sales of other commodities and by-products 15,036 9,975 - Provision of services 2,335 4,048 - Construction contract 664 2,184 - Others 3,536 1,637 63,222 39,010 The aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting date, of which the Group expects to recognise in the next 12 months is RM104,168,000 (2019: RM77,623,000). All other contracts are for periods of one year or less or are billed based on time incurred. As permitted under MFRS 15, the Group applied the practical expedient in MFRS 15 and did not disclose information about recognising performance obligations that have original expected duration of one year or less. 54 LONG TERM INCENTIVE PLAN The Company had established a long term incentive plan (“LTIP”) in the form of employee share grant scheme which is governed by the By-Laws which was approved on 3 February 2016. Pursuant to the LTIP, the Company shall award the grant of up to 10% of the issued and paid-up ordinary share capital of the Company (excluding treasury shares, if any) at any point of time during the duration of the LTIP, to the employees of the Company and its subsidiaries (“Group”) and Executive Director of the Company who fulfil the eligibility criteria as eligible employees and is administered by the LTIP Committee. The LTIP comprises a restricted share (“RS”) grant and a performance share (“PS”) grant which shall be in force for a period of 10 years commencing from 3 February 2016, being the effective date of the implementation of the LTIP. 178 Notes to the Financial Statements For The Financial Year Ended 31 December 2020 FGV HOLDINGS BERHAD Audited Financial Statement 2020