NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2024 (CONT’D) 43. FINANCIAL INSTRUMENTS (CONT’D) 43.1 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) Inputs, Assumptions and Techniques used for Estimating Impairment Losses To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past due. The contract assets relate to unbilled work in progress and have substantially the same risk characteristics as the trade receivables for the same types of contracts. Therefore, the Group concluded that the expected loss rates for trade receivables are a reasonable approximation of the loss rates for the contract assets. The expected loss rates are based on the historical credit losses experienced. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the trade receivables to settle their debts using the linear regressive analysis. The Group has identified the unemployment rate, Gross Domestic Product (GDP) and inflation rate as the key macroeconomic factors of the forward-looking information. Allowance for Impairment Losses LIFETIME LIFETIME GROSS INDIVIDUAL COLLECTIVE CARRYING AMOUNT ALLOWANCE ALLOWANCE AMOUNT THE GROUP RM’000 RM’000 RM’000 RM’000 2024 Current (not past due) 48,748 – – 48,748 1 to 30 days past due 30,670 – – 30,670 31 to 60 days past due 23,914 – – 23,914 61 to 90 days past due 28,758 – – 28,758 More than 90 days past due 123,032 (53) – 122,979 Trade receivables 255,122 (53) – 255,069 Contract assets 289,668 – – 289,668 544,790 (53) – 544,737 FINANCIAL STATEMENTS MATRIX CONCEPTS HOLDINGS BERHAD 208
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