37. FINANCIAL INSTRUMENTS (CONT’D) 37.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D) (b) Credit Risk (Cont’d) (iii) Assessment of Impairment Losses (Cont’d) Other Receivables The Group and the Company apply the 3-stage general approach to measuring expected credit losses for its other receivables and amount owing by subsidiaries. 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 that as at the date of initial recognition. The Group and the Company consider that there has been a significant increase in credit risk when contractual terms change or payments are delayed. 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. The Group and the Company use 3 categories to reflect their credit risk and how the loss allowance is determined for each category:- Category Definition of Category Loss Allowance Performing: Receivables have a low risk of default and a strong capacity to meet contractual cash flows 12-months expected credit losses Underperforming: Receivables for which there is a significant increase in credit risk Lifetime expected credit losses Non-performing: There is evidence indicating the receivable is credit impaired or more than 90 days past due Lifetime expected credit losses 229 Annual Report 2025
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