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6. Revenue

a) Disaggregation of revenue

The Group derives the following types of revenue.

Disaggregation of revenue

June
2020
$'000

June
2019
$'000

Revenue from contracts with customers by contract type

Target cost estimate contract

311,884

305,671

Cost reimbursable contract

157,071

228,089

Fixed price contract

49,350

35,794

Survey and quote contract

36,004

27,407

Services contract

115,754

134,707

670,063

731,668

Interest income

Other parties

1,762

3,629

Other income

Related parties

3,447

7,713

Other

609

0

4,056

7,713

675,881

743,010

Revenue from contract with customers by timing of revenue recognition

Over time

573,215

616,779

At a point in time

96,848

114,889

670,063

731,668

Revenue recognised in the reporting period that was included in the contract liability balance at the beginning of the period

Target cost estimate

8,293

315

Services contract

6,659

0

Cost reimbursable contract

0

879

Fixed price contract

38,238

0

Survey and quote contract

449

0

53,639

1,194

b) Contract asset and liabilities

The Group recognises the following assets and liabilities related to contract with customers.

Contract assets

June
2020
$'000

June
2019
$'000

Contract assets

Collins Class Submarines

17,046

8,718

Maritime Services Group

2,456

1,118

19,502

9,836

The balance of contract assets represents amounts to be billed subsequent to revenue recognition. These amounts are billed as work in progress in accordance with agreed upon contractual terms at periodic intervals or upon achievement of contractual milestones.

Contract liabilities

June
2020
$'000

June
2019
$'000

Contract liabilities

Collins Class Submarines

37,576

51,932

Maritime Services Group

27,899

48,418

65,475

100,350

The balance of contract liabilities represent advances received, progress billings received in advance of the performance of contract activities, labour over recoveries and project loss provision.

c) Unsatisfied long-term contracts

The following table shows unsatisfied performance obligations resulting from the following contracts.

Unsatisfied performance obligations resulting from the following contracts

June
2020
$'000

June
2019
$'000

Aggregate amount of transaction price that are partially or fully unsatisfied as at 30 June

Collins Class Submarines

119,380

519,481

Maritime Services Group

140,543

198,219

259,923

717,700

Management expects that 68% of the transaction price allocated to the unsatisfied contracts as at 30 June 2020 (2019: 76%) will be recognised as revenue during the next reporting period with the remaining 32% (2019: 24%) will be recognised beyond that.