23 RECEIVABLES (CONTINUED) (a) Included in other receivables are cash placed for sugar futures trading facilities of RM17,970,000 (2020: RM Nil). (b) Reconciliation of loss allowance (i) Trade receivables using simplified approach The Group and the Company applies MFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for trade receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The expected loss rates are based on the payment profiles of revenue earned over a period of 24 months before 31 December 2021 or 31 December 2020 respectively and the corresponding historical credit losses experienced within this period. The historical loss rates were not adjusted to reflect forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables, as the Group has not identified any forward looking assumptions which correlate to the historical loss rates. The movement of loss allowance for trade receivables as at 31 December 2021 is as follows: Trade receivables 2021 2020 RM’000 RM’000 At 1 January (10,632) (3,025) Decrease/(Increase) in loss allowance recognised in profit or loss during the year (Note 8) 3,029 (7,607) At 31 December (7,603) (10,632) NOTESTOTHE FINANCIAL STATEMENTS FORTHE FINANCIALYEAR ENDED 31 DECEMBER 2021 WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 344
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