EXCEL FORCE MSC BERHAD Annual Report 2018

88 ANNUAL REPORT 2018 10. Inventories Group and Company 2018 2017 RM RM At cost Replacement parts 45,328 25,860 Recognised in profit or loss Inventories recognised as cost of sales 344,130 389,604 11. Trade Receivables Group Company 2018 2017 2018 2017 RM RM RM RM Trade receivables 5,387,663 3,162,328 5,165,518 2,732,671 Less: Accumulated impairment losses (161,544) (12,208) (126,522) - 5,226,119 3,150,120 5,038,996 2,732,671 Trade receivables are non-interest bearing and the normal trade credit terms granted by the Group and the Company range from 60 to 90 days (2017: 60 to 90 days) from the date of invoice. They are recognised at their original invoice amounts which represent their fair values on initial recognition. Movements in the allowance for impairment losses of trade receivables are as follows: Lifetime Credit Loss allowance impaired allowance RM RM RM Group At 1 January 2018 - 12,208 12,208 Effect of adopting MFRS 9 [Note 2(a)] 65,044 - 65,044 Impairment losses recognised 80,641 21,308 101,949 Impairment losses reversed(1) - (17,657) (17,657) At 31 December 2018 145,685 15,859 161,544 At 1 January 2017 - 16,117 16,117 Impairment losses recognised - 12,208 12,208 Amount written off - (16,117) (16,117) At 31 December 2017 - 12,208 12,208 Company At 1 January 2018 - - - Effect of adopting MFRS 9 [Note 2(a)] 45,881 - 45,881 Impairment losses recognised 80,641 - 80,641 At 31 December 2018 126,522 - 126,522 (1) Impairment losses reversed during the financial year when the related amounts were collected. Notes To The Financial Statements 31 December 2018 (cont’d)