My EG Services Berhad Annual Report 2019

ANNUAL REPORT 2019 187 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019 (CONT’D) FINANCIAL STATEMENTS 51. FINANCIAL INSTRUMENTS (CONT’D) 51.1 FINANCIAL RISK MANAGEMENT POLICIES (cont’d) (b) Credit Risk (cont’d) (iii) Assessment of Impairment Losses (cont’d) Trade Receivables and Financing Receivables (cont’d) In the last financial period, the loss allowance on trade receivables was calculated under MFRS 139. The ageing analysis of trade receivables (including financing receivables and exclude accrued income) is as follows:- Gross Amount Collective Impairment Carrying Amount The Group RM’000 RM’000 RM’000 30.9.2018 Not past due 293,801 - 293,801 Past due: - less than 3 months 10,233 (549) 9,684 - 3 to 6 months 5,250 - 5,250 - over 6 months 13,130 - 13,130 322,414 (549) 321,865 The movements in the loss allowances in respect of financing and trade receivables are disclosed in Notes 16 and 18 to the financial statements respectively. The Company The Company believes that no impairment allowance is necessary in respect of its trade receivables. Other Receivables The Group applies the 3-stage general approach to measuring expected credit losses for its other receivables. Under this approach, the Group assesses whether there is a significant increase in credit risk on the receivables by comparing their risk of default as at the reporting date with the risk of default as at the date of initial recognition based on available reasonable and supportable forward-looking information. 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 considers a receivable is credit impaired when the receivable is in significant financial difficulty, for instances, the receivable is in breach of financial covenants or insolvent. Receivables that are credit impaired are assessed individually while other receivables are assessed on a collective basis. Based on the assessment performed, the identified impairment loss was immaterial and hence, it is not provided for.