EXCEL FORCE MSC BERHAD Annual Report 2020

EXCEL FORCE MSC BERHAD - ANNUAL REPORT 2020 88 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CONT’D) 11. INVENTORIES Group and Company 2020 2019 RM RM Replacement parts 23,992 23,992 Recognised in profit or loss Inventories recognised as cost of sales 783,556 810,273 12. TRADE RECEIVABLES Group Company 2020 2019 2020 2019 RM RM RM RM Trade receivables 6,031,303 5,546,718 5,830,491 5,305,471 Less: Accumulated impairment losses (183,391) (198,431) (159,878) (163,445) 5,847,912 5,348,287 5,670,613 5,142,026 Trade receivables are non-interest bearing and are generally on 60 to 90 days (2019: 60 to 90 days) term. They are recognised at their original invoice amounts which represent their fair values on initial recognition. Movements in the allowance for impairment losses of trade receivables are as follows: Lifetime allowance Credit impaired Loss allowance RM RM RM Group At 1 January 2020 168,500 29,931 198,431 Impairment losses reversed* (6,607) (8,433) (15,040) At 31 December 2020 161,893 21,498 183,391 At 1 January 2019 131,613 29,931 161,544 Impairment losses recognised 36,923 - 36,923 Impairment losses reversed* (36) - (36) At 31 December 2019 168,500 29,931 198,431 Company At 1 January 2020 163,445 - 163,445 Impairment losses reversed* (3,567) - (3,567) At 31 December 2020 159,878 - 159,878 At 1 January 2019 126,522 - 126,522 Impairment losses recognised 36,923 - 36,923 At 31 December 2019 163,445 - 163,445 * Impairment losses reversed during the financial year when the related amounts were collected.