ANNUAL REPORT 2021 239 FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS ʹˢ˥ ˧˛˘ Ѓˡ˔ˡ˖˜˔˟ ˬ˘˔˥ ˘ˡ˗˘˗ ʦʤ ʷ˘˖˘ˠ˕˘˥ ʥʣʥʤ (CONT’D) 48. FINANCIAL INSTRUMENTS (CONT’D) 48.1 FINANCIAL RISK MANAGEMENT POLICIES (cont’d) (b) Credit Risk (cont’d) (iii) Assessment of Impairment Losses (cont’d) The Company (cont’d) Amount Owing By Joint Ventures (Non-trade balances) (cont’d) In deriving the PD and LGD, the Group considers the receivable’s past payment status and its financial condition as at the reporting date. The PD is adjusted to reflect current and forwardlooking information that will affect the ability of the receivable to settle its debts. Allowance for Impairment Losses No expected credit loss is recognised on amount owing by joint ventures as it is negligible. Amount Owing By Associates The Group applies the 3-stage general approach to measuring expected credit losses for its amount owing by associates. Under this approach, loss allowance is measured on either 12-month expected credit losses or lifetime expected credit losses, by considering the likelihood that the receivable would not be able to repay during the contractual period (probability of default, PD), the percentage of contractual cash flows that will not be collected if default happens (loss given default, LGD) and the outstanding amount that is exposed to default risk (exposure at default, EAD). In deriving the PD and LGD, the Group considers the receivable’s past payment status and its financial condition as at the reporting date. The PD is adjusted to reflect current and forwardlooking information that will affect the ability of the receivable to settle its debts. Allowance for Impairment Losses Gross Amount Lifetime Loss Allowance Carrying Amount The Group RM’000 RM’000 RM’000 2021 Low credit risk 28 - 28 Credit Impaired 95,255 (95,255) - 95,283 (95,255) 28 2020 Low credit risk 5 - 5 Credit Impaired 95,255 (95,255) - 95,260 (95,255) 5
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