The Group adopted IFRS 15 using the modified retrospective method of adoption with the date of initial application of 1 August 2018. The Group elected to apply the standard to all contracts as at 1 August 2018. The adoption of IFRS 15 did not have a material impact on the Group as at 1 August 2018.

Comparative information under IAS 18

Figures in Rand thousand Restated 
Sale of goods 2 919 279   
Rendering of services 12 814 835   
Financial element of revenue 137 233   
Presented as discontinued operations (note 16) (3 768 030)  
  12 103 317   
Disaggregated revenue    
Figures in Rand thousand 2019   
Revenue by sector    
Public sector  18%    
Private sector  82%    
Total  100%    
Major revenue types       
Services  8 391 367    
Managed services  3 145 623    
Hardware sales  2 060 857    
Software maintenance  927 938    
Software/licence contracts  357 544    
Rentals  287 913    
Hardware maintenance  91 355    
Services – other  57 353    
Sale of goods – other  53 449    
Total  15 373 399    
Timing of revenue recognition       
Goods or services transferred to customers:       
– at a point in time  2 471 849    
– over time  12 901 550    
Total  15 373 399    
Continuing operations  11 791 070    
Discontinued operations  3 582 329    
Total  15 373 399    
Contract balances       
Contract assets (note 13) 644 937    
Contract liabilities (notes 23 and 25) (364 048)   
Total  280 889    

The contract assets primarily relate to the Group’s rights to consideration for work completed but not billed at the reporting date for mostly service contracts.

The contract assets are transferred to receivables when the rights become unconditional, which usually occurs when the Group issues an invoice to the customer.

The contract liabilities primarily relate to the advance consideration received from customers and deferred revenue for services and maintenance contracts. Revenue is recognised from the contract liability amounts as and when services are delivered and related performance obligations satisfied.

Significant changes in the contract assets and the contract liabilities balances during the period are as follows:

Figures in Rand thousand 2019   
Contract assets    
Contract assets at the beginning of the reporting period  799 768    
Transfers from contract assets recognised at the beginning of the period to receivables  (271 126)   
Increases as a result of changes in the measure of progress  151 618    
Impairment allowance (note 44) (35 323)   
Contract assets at the end of the reporting period  644 937    
Contract liabilities       
Contract liabilities at the beginning of the reporting period  422 937    
Revenue recognised that was included in the contract liability balance at the beginning of the period  (141 841)   
Increases due to advance cash received or amount billed, excluding amounts recognised as revenue during the period  152 980    
Liabilities directly associated with the assets held for sale (note 15) (70 028)   
Contract liabilities at the end of the reporting period  364 048    
Contract assets       
Unbilled revenue  738 773    
Allowance for impairment  (93 836)   
Total  644 937    

Performance obligations

Nature of goods and services

The following table provides an explanation of the entity’s performance obligations:

Revenue type Recognition drive Transfer of control Measurement of
transaction price
Duration of contract
  Agent – upon delivery Agent – at a point in time    
Software/licence contracts Principal – monthly Principal – over time Contracted amounts > 1 year
Hardware sales Upon delivery At a point in time Contracted amounts < 1 year
Maintenance contracts Monthly Over time Contracted amounts > 1 year
Managed services Monthly Over time Contracted amounts > 1 year
Other services Monthly/costs incurred Over time Contracted amounts > 1 year

Remaining performance obligations

The following table includes revenue to be recognised in future related to performance obligations that are unsatisfied (or partially satisfied) as at 31 July 2019:

Figures in Rand thousand 2019  
Within one year 2 049 564  
More than one year 73 290  
Total 2 122 854  

The remaining performance obligations expected to be recognised in more than one year relate to maintenance contracts and service contracts that are to be satisfied within two years. All the other remaining performance obligations are expected to be recognised within one year.

Where revenue is recognised over time on the costs incurred method, estimates are made to the total budgeted cost.

Significant judgement was applied in assessing whether the Group is an agent or principal in the software/licence contracts and this resulted in prior period restatements. Refer to note 3.