Annual report 2019

108

20. UNBILLED AND DEFERRED REVENUE Unbilled and deferred Group revenue relates to the contracting and execution of construction projects and to services. The recognition of revenue, timing of billings and cash collections result in unbilled receivables, accounts receivable and deferred revenue. In the contracting business amounts are billed as work progress in accordance with contractual terms, either at periodic intervals or upon achievement of contractual milestones. In the event that billing occurs subsequent to revenue recognition, unbilled revenue is recognized (as an asset). In the event that payments are received from customers based on deposits or invoices in advance of revenue recognition, deferred revenue is recognized (as a liability). In the services business amounts are billed based on contractually agreed schedules and/or milestones. As revenue is recognized/allocated to a large extent on the basis of sailing days, unbilled revenue or deferred revenue is recognized for the difference between revenues recognized and invoices issued.

AS AT 31 DECEMBER 2018

AS AT 31 DECEMBER 2019

Unbilled revenue Deferred revenue

304,856 - 221,920

279,981 - 315,756 - 35,775

82,936

Unbilled and deferred revenue of the Group is influenced by the mix of projects and services that are executed at a certain point of time. Inherent to the Group’s activities, the nature and amount of unbilled and deferred revenue depends on the specifics of the projects, due to the variety clients and to the ever- changing client base, contracts with different payment conditions, milestones and other details of contracts executed within a wide spectrum of economic environments. Furthermore, different payments terms are agreed in the contracts with customers and usually depend on the jurisdiction in which the services are performed. In 2019 approximately 91% of the unbilled amount of EUR 304,856 thousand at 31 December 2018 was invoiced to customers by the Group (2018: 95% of the unbilled amount of EUR 167,594 thousand as at 31 December 2017). During 2019 unbilled revenue was not impacted by business combinations (during 2018: nil). Almost the entire amount of deferred revenue at 31 December 2018 relates to work performed in 2019. Contract revenue recognized, unbilled revenue and deferred revenue are subject to judgements and estimates. Especially judgements and estimates on the progress of execution of the projects are the basis for allocating total (project) revenue to cumulative (project) revenues recognized in the Consolidated Statement of Profit or Loss and to future (project) revenues. This allocation of project revenue is based on judgements and estimates of total (project) revenues, including variable considerations, and contract modifications, and expected total costs of the projects. Different estimates would have resulted in different, either higher or lower, revenues, and related costs, for the year. Revenue, and related costs, recognized in the Consolidated Statement of Profit or Loss is not materially impacted by such judgements and estimates. Looking with hindsight at the judgements and estimates made regarding revenue recognized, approximately 1.6% of the revenues recognized in 2018 should have been accounted for as revenue in 2019, of the revenues recognized in 2017 relates approximately 0.5% to 2018.

ANNUAL REPORT 2019 – BOSKALIS FINANCIAL STATEMENTS 2019 L 9 -- BOSKALIS FINANCIAL STATEMENTS 2019 Trade receivables Other receivables and prepayments

21. TRADE AND OTHER RECEIVABLES

2018

2019

330,324 27,143 307,140 664,607

378,489

Amounts due from joint ventures and associates

5,927

317,796 702,212