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) 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 and the Company apply 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 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 the risk of default as at the date of initial recognition. The Group and the Company consider 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. 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 12-months expected a strong capacity to meet contractual cash flows credit losses Underperforming: Receivables for which there is a significant Lifetime expected increase in credit risk credit losses Non performing: There is evidence indicating the receivable is Lifetime expected credit impaired or more than 90 days past due credit losses FINANCIAL STATEMENTS MATRIX CONCEPTS HOLDINGS BERHAD 210
RkJQdWJsaXNoZXIy NDgzMzc=