Financial Statements Notes to the Financial Statements 35. FINANCIAL INSTRUMENTS (continued) (iv) Credit risk (continued) Trade receivables (continued) Recognition and measurement of impairment losses (continued) The movement in the allowance for impairment in respect of trade receivables during the year are shown below: Group RM’000 At 1 January 2022 346,823 Impairment loss 59,381 Written off (7,765) Transfer to assets classified as held for sale (63) Translation differences (32,244) At 31 December 2022/1 January 2023 366,132 Impairment loss 99,226 Written off (7,087) Transfer to assets classified as held for sale (58) Disposal of subsidiaries (87) Translation differences (16,787) At 31 December 2023 441,339 Fixed deposits and cash and cash equivalents Cash and fixed deposits are placed with financial institutions which are regulated and with good credit ratings. As at the end of the reporting period, the maximum exposure to credit risk is represented by their carrying amounts in the statement of financial position. The Group and the Company consider their fixed deposits and cash and cash equivalents to have low credit risk based on the external credit ratings of the counterparties. The amount of the allowance on fixed deposits and cash and cash equivalents was negligible. Amounts due from subsidiaries Risk management objectives, policies and processes for managing the risk The Company provides unsecured advances to subsidiaries. The Company regularly monitors the ability of the subsidiaries to repay the advances on an individual basis. Exposure to credit risk, credit quality and collateral As at the end of the reporting period, the maximum exposure to credit risk is represented by their carrying amounts in the statement of financial position. Impairment losses The Company determines the probability of default from these receivables individually using internal information available. The Company considers these receivable balances as low credit risk unless there is a significant increase in credit risk when a subsidiary’s financial position deteriorates significantly or the balance is overdue for more than 365 days. As at the end of the reporting period, the ECL allowance on these low-credit-risk balances is insignificant. IHH Healthcare Berhad 210
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