34. FINANCIAL INSTRUMENTS (CONTINUED) 34.4 Credit risk (continued) Receivables and contract assets (continued) Exposure to credit risk, credit quality and collateral As at the end of the reporting period, the maximum exposure to credit risk arising from receivables and contract assets are represented by the carrying amounts in the statements of financial position. Concentration of credit risk The exposure of credit risk for receivables and contract assets (excluding prepayments) as at the end of the reporting period by geographical region was: Group 31.12.2023 RM’000 30.6.2022 RM’000 Asia 217,089 269,374 Europe 65,408 8,744 North America 39 3,434 282,536 281,552 Recognition and measurement of impairment losses In managing credit risk of trade receivables, the Group manages its debtors and takes appropriate actions (including but not limited to legal actions) to recover long overdue balances. Generally, the trade receivables will be paid within 180 days. A significant portion of trade receivables are regular customers that have been transacting with the Group. The Group adopts the simplified approach and uses an allowance matrix to measure expected credit losses (“ECLs”) of trade receivables and contract assets. To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics. Financial Statements DAGANG NeXCHANGE BERHAD 282 NOTES TO THE FINANCIAL STATEMENTS
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