NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 136 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 2025 Not past due 103,928,613 - - 103,928,613 Past due: - less than 1 month 10,472,457 - - 10,472,457 - 1 to 9 months 5,621,513 - (260,727) 5,360,786 - over 9 months 619,357 (82,167) (95,850) 441,340 Trade receivables 120,641,940 (82,167) (356,577) 120,203,196 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 The movements in the loss allowances in respect of trade receivables is disclosed in Note 14 to the financial 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 significant 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 significant increase in credit risk when there are changes in contractual terms or delay in payment. Regardless of the assessment, a significant 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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