Frontken Corporation Berhad 200401012517 (651020-T) • ANNUAL REPORT 2022 156 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) 28. FINANCIAL INSTRUMENTS (CONT’D) (a) Financial Risk Management Policies (Cont’d) Credit Risk (Cont’d) (iii) Assessment of impairment losses (Cont’d) • Amount owing by subsidiaries (Cont’d) There are no significant changes in the estimation techniques and assumptions as compared to the previous financial year. Allowance for Impairment Losses Gross Lifetime Loss Carrying Amount Allowance Amount The Company RM RM RM 2022 Low credit risk 4,339,079 (2,989,079) 1,350,000 2021 Low credit risk 7,164,079 (2,989,079) 4,175,000 The movements in the loss allowances are disclosed in Note 18 to the financial statements. • Financial Guarantee Contracts All of the financial guarantee contracts are considered to be performing, have low risks of default and historically there were no instances where these financial guarantee contracts were called upon by the parties of which the financial guarantee contracts were issued to. Accordingly, no loss allowances were identified based on 12-month expected credit losses.
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