NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2023 (CONT’D) 44. FINANCIAL INSTRUMENTS (CONT’D) 44.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D) (b) Credit Risk (Cont’d) (iii) Assessment of Impairment Losses (Cont’d) Trade Receivables and Contract Assets (Cont’d) Property Development Segment The management is of the opinion that the amount owed by the purchasers is duly recoverable, due to the following reasons:- (i) The transfer of the property to the purchaser is subject to the full payment of the outstanding amount; (ii) Most of the purchasers have end financing arrangements, and payments are slow because of the credit processes of the end financiers; and (iii) In the event the sale is terminated for non-payment, the Group will be able to recover the property since the transfer of the property is subject to the full payment of the outstanding amount. Other Segments Other segments are also subject to the impairment requirements of MFRS 9, the identified impairment loss was immaterial and hence, it is not provided for. Other Receivables The Group applies 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 assesses 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 considers 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. INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 228 FINANCIAL STATEMENTS
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