Yinson Annual Report 2019

Yinson Holdings Berhad ANNUAL REPORT 2019 214 Key audit matters How our audit addressed the key audit matters Assessing the impact of expected credit loss (“ECL”) model on the trade and other receivables of the Group Refer to Note 24 to the financial statements. YHB Group’s trade and other receivables As at 31 January 2019, the total gross trade and other receivables reported in the consolidated financial statements was RM484.4 million. Of this amount, RM55.2 million had been provided for impairment loss. We focused on the carrying value of trade and other receivables as there are significant judgements and critical estimates made by management in determining loan loss allowances arising from applying ECL on these financial assets. Audit procedures performed over this key audit matter were as follows: YHB Group’s trade and other receivables In assessing the ECL model on the trade and other receivables, we performed the following audit procedures: • Discussed with management to understand the underlying assumptions used in the simplified approach under MFRS 9 when determining the ECL for trade and other receivables; • Reviewed the appropriateness of key assumptions used in the simplifiedapproachimpairmentmodelandtestingmathematical accuracy of the model used; and • Tested the accuracyof the ageingagainst supportingdocuments on a sample basis. Based on the procedures performed, no material exception was noted. REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED) Key audit matters (continued) Independent auditors’ report to the members of Yinson Holdings Berhad (cont’d) (Incorporated in Malaysia) (Company No. 259147-A)