FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2024 122 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) 28. FINANCIAL INSTRUMENTS (CONT’D) (a) Financial Risk Management Policies (Cont’d) Credit Risk (Cont’d) (iii) Assessment of impairment losses (Cont’d) • Trade receivables (Cont’d) Allowance for Impairment Losses Lifetime Lifetime Gross Individual Collective Carrying Amount Impairment Impairment Amount The Group RM RM RM RM 2024 Not past due 121,543,285 - - 121,543,285 Past due: - less than 1 month 11,193,504 - - 11,193,504 - 1 to 9 months 7,406,179 - - 7,406,179 - over 9 months 982,722 (182,918) (376,166) 423,638 Trade receivables 141,125,690 (182,918) (376,166) 140,566,606 2023 Not past due 100,557,191 - - 100,557,191 Past due: - less than 1 month 10,409,316 - - 10,409,316 - 1 to 9 months 8,264,302 - (266,668) 7,997,634 - over 9 months 365,308 (209,315) (145,164) 10,829 Trade receivables 119,596,117 (209,315) (411,832) 118,974,970 The movements in the loss allowances in respect of trade receivables is disclosed in Note 14 to the nancial statements. • Other receivables The Group and the Company apply the 3-stage general approach to measuring expected credit losses for its other receivables. Inputs, Assumptions and Techniques used for Estimating Impairment Losses Under this approach, the Group and the Company assess whether there is a signi cant increase in credit risk for receivables by comparing the risk of a default as at the reporting date with the risk of default as at the date of initial recognition. The Group and the Company consider there has been a signi cant increase in credit risk when there are changes in contractual terms or delay in payment. Regardless of the assessment, a signi cant increase in credit risk is presumed if a receivable is more than 30 days past due in making a contractual payment.
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