My EG Services Berhad Annual Report 2020

ANNUAL REPORT 2020 217 FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS For The Financial Year Ended 31 December 2020 (CONT’D) 47. FINANCIAL INSTRUMENTS (CONT’D) 47.1 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) The expected loss rates are based on the payment profiles of sales over a period of 12 months from the measurement date and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle their debts. For impaired loans, advances and financing (“(loan(s)”) which are individually assessed, judgement by management is required in the estimation of the amount and timing of future cash flows in the determination of impairment losses. In estimating these cash flows, judgements are made about the realisable value of collateral pledged and the borrower’s financial position. These estimations are based on assumptions and the actual results may differ from these, hence, resulting in changes to impairment losses recognised. The information about the exposure to credit risk and the loss allowances calculated under MFRS 9 for both trade and financing receivables (exclude accrued income) are summarised below:- Gross Amount Collective Impairment Carrying Amount The Group RM’000 RM’000 RM’00 2020 Current (not past due) 300,046 - 300,046 Less than 3 months past due 39,852 - 39,852 3 to 6 months past due 43,327 - 43,327 More than 6 months past due 20,674 (2,170) 18,504 403,899 (2,170) 401,729 Gross Amount Collective Impairment Carrying Amount The Group RM’000 RM’000 RM’000 2019 Current (not past due) 362,456 - 362,456 Less than 3 months past due 19,504 - 19,504 3 to 6 months past due 34,037 - 34,037 More than 6 months past due 60,650 (1,578) 59,072 476,647 (1,578) 475,069 The movements in the loss allowances in respect of financing and trade receivables are disclosed in Notes 14 and 16 to the financial statements respectively.