Yinson Annual Report 2021

296 YINSON HOLDINGS BERHAD SECTION 07 : ACCOUNTABILITY NOTES TO THE FINANCIAL STATEMENTS (CONT’D) For the financial year ended 31 January 2021 42. Financial risk management objectives and policies (continued) (b) Credit risk (continued) (ii) Debt instruments at amortised costs other than trade receivables and contract assets (continued) Based on the above, loss allowance is measured on either 12 month ECL or lifetime ECL using a PD x LGD x EAD methodology as follows: t 1% AQSPCBCJMJUZ PG EFGBVMU o UIF MJLFMJIPPE UIBU UIF EFCUPS XPVME OPU CF BCMF UP SFQBZ EVSJOH UIF contractual period; t -(% AMPTT HJWFO EFGBVMU o UIF QFSDFOUBHF PG DPOUSBDUVBM DBTI nPXT UIBU XJMM OPU CF DPMMFDUFE JG EFGBVMU happens; and t &"% AFYQPTVSF BU EFGBVMU o UIF PVUTUBOEJOH BNPVOU UIBU JT FYQPTFE UP EFGBVMU SJTL In deriving the PD and LGD, the Group and the Company considers historical data by each debtor by category and adjusts for forward-looking macroeconomic data. The Group and the Company have identified the industry and geographical area which the debtor operates in, to be the most relevant factors, and accordingly adjusts the historical loss rates based on expected changes in these factors. Loss allowance is measured at a probability- weighted amount that reflects the possibility that a credit loss occurs and the possibility that no credit loss occurs. No significant changes to estimation techniques or assumptions were made during the reporting period. The following table contains an analysis of the credit risk exposure for which an ECL allowance is recognised. The gross carrying amount disclosed below also represents the Group’s and the Company’s maximum exposure to credit risk on these assets: Group 2021 Performing Under- performing Not performing Total RM million RM million RM million RM million Other receivables Gross carrying amount 234 - 32 266 Accumulated impairment loss (3) - (32) (35) Net carrying amount 231 - - 231 Cash and bank balances Gross/net carrying amount 1,821 - - 1,821 Finance lease receivables Gross/net carrying amount 2,166 - - 2,166