Notes tothe financial statements For the financial year ended 31 December 2023 4. Revenue (cont’d) (a) Disaggregation of revenue (cont’d) Contract Balances Information about trade receivables and contract liabilities from contracts with customers are disclosed as follows: 2023 2022 Rp million Rp million Trade receivables (Note 24) 750,139 1,200,214 Contract liabilities (Note 26) 209,892 198,209 Contract liabilities are the Group’s obligations to transfer goods and services to customers for which the Group have received advances collected from customers prior to the transfer of control of goods and services to the customers. Contract liabilities are recognised as revenue when the Group satisfied the performance obligation under the contract. Set out below is the amount of revenue recognized from amounts included in contract liabilities at the beginning of each of the reporting period: 2023 2022 Rp million Rp million Amounts included in contract liabilities at the beginning of the year 168,304 305,992 (b) Estimating variable consideration for sale of products The amount of revenue recognised is based on the consideration that the Group received in exchange for transferring promised goods or services to the customers, and adjusted for expected returns and price adjustments arising from product quality. For product returns and price adjustments arising from product quality, the Group uses most likely method in estimating the variable consideration. Management considers its historical experience to develop an estimate of variable consideration for expected returns and adjustments arising from product quality. During the year, the expected returns and pricing adjustments were assessed to be immaterial and hence, no refund liabilities is recognised. 96 GROUP OVERVIEW OPERATION AND FINANCIAL REVIEW SUSTAINABILITY & GOVERNANCE FINANCIALS OTHER INFORMATION Indofood Agri Resources Ltd
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