31
MIGHT Directors’ Report And Audited Financial Statements 2020
9.
TRADE AND OTHER RECEIVABLES (continued)
The Group applies the MFRS 9 simplified approach in measuring expected credit losses (“ECL”) which uses a lifetime expected loss allowance for trade receivables. The Group has established a provision matrix that is based on its historical credit loss experience adjusted to reflect current and forward-looking information such as consumer price index a ecting the ability of the customers to settle the receivables. For all other financial assets, the Group recognises lifetime ECL when there has been significant increase in credit risk since initial recognition. The Group defined significant increased in credit risk based on past due information, i.e. overdue amounts. However, if the credit risk on the financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance for the financial instrument at an amount equal to 12-month ECL. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result in default events on a financial instrument that are possible within 12 months after reporting date. For the purpose of assessing whether the credit risk of the Group has increased significantly since initial recognition, the Group compares the risk of a default occurring at the reporting date with the risk of a default occurring at the date of initial recognition. In making this assessment, the Group considers both quantitative and qualitative informa- tion that are reasonable and supportable, including historical experience and forward-looking information, which are available without undue cost or e ort. Significant judgement is required in determining the probabilities of default by receivables, significant increase in credit risk and appropriate forward looking information, incorporating the impact of the COVID-19 pandemic in assessing the expected credit loss allowance.
(f)
The ageing analysis of trade receivables of the Group and of the Company are as follows:
(g)
GROSS CARRYING AMOUNT RM
IMPAIRMENT LOSS RM
NET CARRYING AMOUNT RM
GROUP
31 December 2020 Current 1 to 90 days More than 90 days
-
-
-
177,948 3,010,928
177,948 3,580
-
(3,007,348)
3,188,876
(3,007,348)
181,528
31 December 2019 Current 1 to 90 days More than 90 days
77,400 30,620 2,724,211
77,400 30,620 333,954
- -
(2,390,257)
2,832,231
(2,390,257)
441,974
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