MSM Malaysia Holdings Berhad Annual Report 2019

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 23 RECEIVABLES (CONTINUED) (e) Reconciliation of loss allowance (continued) (i) Trade receivables using simplified approach (continued) The loss allowance for trade receivables as at 31 December 2019 reconciles to the opening loss allowance for that provision as follows: Trade receivables 2019 2018 RM’000 RM’000 At 1 January (2,827) - Increase in loss allowance recognised in profit or loss during the year (Note 8) (598) (2,938) Receivables written off - 111 Unused amount reversed (Note 8) 400 - At 31 December (3,025) (2,827) (ii) The following table contains an analysis of the credit risk exposure of financial instruments for which an ECL allowance is recognised. The gross carrying amount of financial assets below also represents the Group’s maximum exposure to credit risk on these assets: Less than More than More than More than 30 days 30 days 60 days 90 days 31 December 2019 Current past due past due past due past due Total RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Expected loss rate 0.05% 0.47% 1.66% 6.86% 38.99% Gross carrying amount – trade receivables 227,853 28,046 7,069 3,150 6,248 272,366 Loss allowance (124) (132) (117) (216) (2,436) (3,025) Carrying amount (net of loss allowance) 227,729 27,914 6,952 2,934 3,812 269,341 189 FINANCIAL STATEMENTS 08