PRG Holdings Berhad Annual Report 2018

13. TRADE AND OTHER RECEIVABLES (continued) (c) Impairment for trade receivables that do not contain a significant financing component are recognised based on the simplified approach using the lifetime expected credit losses. The Group uses an allowance matrix to measure the expected credit loss of trade receivables from individual customers. Expected loss rates are calculated using the roll rate method. During this process, the probability of non-payment by the trade receivables is adjusted by forward looking information and multiplied by the amount of the expected loss arising from default to determine the lifetime expected credit loss for the trade receivables. For trade receivables, which are reported net, such impairments are recorded in a separate impairment account with the loss being recognised within administrative expenses in the consolidated statement of profit or loss and other comprehensive income. On confirmation that the trade receivable would not be collectable, the gross carrying value of the asset would be written off against the associated impairment. It requires management to exercise significant judgement in determining the probability of default by trade receivables, appropriate forward looking information and significant increase in credit risk. Lifetime expected loss provision for trade receivables of the Group as at 31 December 2018 are as follows: Gross Lifetime Net carrying expected carrying amount loss amount RM’000 RM’000 RM’000 Collective assessment Not past due 24,093 (42) 24,051 Past due 1 - 30 days 4,154 (61) 4,093 31 - 60 days 278 (12) 266 61 - 90 days 912 (15) 897 Over 90 days 94 (26) 68 29,531 (156) 29,375 Individual assessment 39,097 (1,109) 37,988 68,628 (1,265) 67,363 During the financial year, the Group did not renegotiate the terms of any trade receivables. (d) Movements in the impairment allowance for trade receivables are as follows: Group Company 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 At 1 January 811 89 91 - Effect of adoption of MFRS 9 - 255 - 91 Restated as at 1 January 811 344 91 91 Charge for the financial year 471 491 - * Reversal (23) (10) (22) - Exchange differences 6 (14) - - At 31 December 1,265 811 69 91 * Amount is less then RM1,000. 2018 A N N U A L R E P O R T 130 notes to the financial statements 31 December 2018 (continued)