92 Annual Report 2025 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2025 (CONT’D) 12. DIGITAL ASSETS (CONT’D) Material accounting policy information Digital assets are accounted for as intangible assets under the cost model. After initial recognition, an intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses. The digital assets held by the Group and the Company appear to be no foreseeable limit to the period over which they could be exchanged with a willing counterparty for cash or other goods or services. As such, digital assets are not amortised. Indefinite useful life of digital assets is review for impairment annually. Digital assets are derecognised when the Group and the Company have transferred substantially all the risks and rewards of ownership on disposal. The differences between the net disposal proceeds, if any, and the net carrying amount recognised in profit or loss. 13. TRADE RECEIVABLES Group Company 2025 2024 2025 2024 RM RM RM RM Trade receivables 4,184,013 4,169,063 - - Less: Accumulated impairment losses (64,415) (51,153) - - 4,119,598 4,117,910 - - Trade receivables are non-interest bearing and are generally on 30 days (2024: 30 days) term. 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 allowance Credit impaired Loss allowance RM RM RM Group At 1 July 2024 39,599 11,554 51,153 Charge for the financial year 13,262 - 13,262 At 30 June 2025 52,861 11,554 64,415 At 1 July 2023 63,166 11,554 74,720 Impairment losses reversed* (23,567) - (23,567) At 30 June 2024 39,599 11,554 51,153 Company At 1 July 2023 60,271 - 60,271 Transfer upon corporate reorganisation exercise (60,271) - (60,271) At 30 June 2024 - - - * Impairment losses reversed when the related amounts were collected. The loss allowance account in respect of trade receivables is used to record loss allowance. Unless the Group and the Company are satisfied that recovery of the amount is possible, the amount considered irrecoverable is written off against the receivable directly.
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