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) Amount Owing by Subsidiaries (Non-trade balances) The Company also applies the 3-stage general approach (see information in other receivables above) to measuring expected credit losses for all inter-company balances. Inputs, Assumptions and Techniques used for Estimating Impairment Losses The Group and the Company measure the expected credit losses of receivables having significant balances, receivables that are credit impaired and receivables with a high risk of default on an individual basis. The remaining receivables are grouped by shared credit risk characteristics and assessed on a collective basis. The Company measures the expected credit losses on an individual basis, which is aligned with its credit risk management practices on the inter-company balances. The Company considers loans and advances to subsidiaries have low credit risks. The Company assumes that there is a significant increase in credit risk when a subsidiary’s financial position deteriorates significantly. As the Company is able to determine the timing of payments of the loans and advances when they are payable, the Company considers the loans and advances to be in default when the subsidiaries are not able to pay when demanded. For loans and advances that are repayable on demand, impairment loss is assessed based on the assumption that repayment of the outstanding balances is demanded at the reporting date. If the subsidiary does not have sufficient highly liquid resources when the loans and advances are demanded, the Company will consider the expected manner of recovery to measure the impairment loss; the recovery manner could be either through ‘repayable over time’ or a fire sale of less liquid assets by the subsidiary. For loans and advances that are not repayable on demand, impairment losses are measured using techniques similar to those for estimating impairment losses of other receivables, as disclosed above. There are no significant changes in the estimation techniques and assumptions as compared to the previous financial year. Allowance for Impairment Losses Based on the assessment performed, the identified impairment loss was immaterial and hence, it is not provided for. 231 Annual Report 2025
RkJQdWJsaXNoZXIy NDgzMzc=