GHL System Berhad Annual Report 2017

ANNUAL REPORT 2017 105 NOTES TO THE FINANCIAL STATEMENTS 31 December 2017 CONT’D 19. TRADE AND OTHER RECEIVABLES (cont’d) (e) The reconciliation of movement in the impairment losses are as follows: Group Company 2017 2016 2017 2016 RM RM RM RM Trade receivables At 1 January 8,686,814 7,113,435 6,272,834 4,486,038 Charge for the financial year 1,410,478 1,740,822 621,522 1,835,105 Reversal of impairment losses (869,279) (187,459) (2,400,000) (48,309) Written off (1,142,624) - - - Exchange differences (129,766) 20,016 - - At 31 December 7,955,623 8,686,814 4,494,356 6,272,834 Other receivables At 1 January 230,436 159,766 26,881,479 47,711,927 Charge for the financial year - 70,670 209,732 3,235,604 Reversal of impairment losses - - - (71,348) Written off - - - (23,994,704) At 31 December 230,436 230,436 27,091,211 26,881,479 8,186,059 8,917,250 31,585,567 33,154,313 Trade and other receivables that are collectively determined to be impaired at the end of each reporting period relate to those debtors that are not individually assessed for impairment and share similar credit risk characteristics. These receivables are not secured by any collateral or credit enhancements. The Group makes impairment of receivables based on an assessment of the recoverability of receivables. Impairment is applied to receivables where events or changes in circumstances indicate that the carrying amounts may not be recoverable. Management specifically analyses historical bad debt, customer concentration, customer creditworthiness, current economic trends and changes in customer payment terms when making a judgement to evaluate the adequacy of impairment of receivables. Where expectations differ from the original estimates, the differences would impact the carrying amount of receivables.