My EG Services Berhad Annual Report 2020

MY E.G. SERVICES BERHAD Regisration No. 200001003034 (505639-K) 218 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) 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. Amount Owing By Joint Ventures (Non-trade balances) The Group applies the 3-stage general approach to measuring expected credit losses for amount owing by joint ventures. No expected credit loss is recognised on these balances as it is negligible. Amount Owing By Associates The information about the exposure to credit risk and the loss allowances calculated under MFRS 9 for amount owing by associates are summarised as below:- Gross Amount Lifetime Loss Allowance Carrying Amount The Group RM’000 RM’000 RM’000 2020 Low credit risk 5 - 5 Credit Impaired 95,255 (95,255) - 95,260 (95,255) 5 2019 Low credit risk 6 - 6 Credit Impaired 95,450 (95,450) - 95,456 (95,450) 6