annual_report_2019_en

2019 Annual Report (^115)
8 Revenue
(CNY million) 2019 2018
Revenue from
contracts with
customers
858,473 720,940
Rental income 360 262
858,833 721,202
Revenue from contracts with customers is analysed by
timing of revenue recognition as follows:
(CNY million) 2019 2018
Recognised at
a point in time
722,274 608,092
Recognised over
time
136,199 112,848
858,473 720,940
Further disaggregation of revenue by business and
geography is set out in note 7.
The amount of revenue recognised for the year ended
December 31, 2019 from POBs satisfied (or partially
satisfied) in previous years amounted to CNY1,616
million (2018: CNY1,084 million). The revenue was
constrained in prior years as the relevant customers
are high credit risk rated and the collectability of
sales consideration was estimated to be low.
Transaction price allocated to remaining
performance obligations
As at December 31, 2019, the aggregated amount
of transaction price allocated to the remaining
performance obligations under the Group’s existing
customer contracts is CNY96,525 million (2018:
CNY94,449 million). This amount mainly represents
the remaining performance obligations under the
Group’s Carrier Business and Enterprise Business
contracts. The Group will recognise the revenue in
future when control of the corresponding service or
product is transferred to the customer as stipulated
in note 3(q). 71% of the amount is expected to occur
over the next year (2018: 65%), while the remaining
portion is expected to occur in the years that follow.
The amounts disclosed above do not include any
estimated amounts of variable consideration that are
constrained.
The Group does not disclose information about
remaining performance obligations that have original
expected durations of one year or less as permitted
by IFRS 15.
Revenue is recognised when a performance obligation
is satisfied in accordance with the accounting policies
in note 3(q). The timing of payment from customers
relative to revenue recognition generates either
contract assets or trade receivables for payments
received in arrears or contract liabilities for payments
received in advance.
Contract assets and contract liabilities are presented
in notes 21 and 27 respectively.