3) FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
(Cont’d)
Credit risk
(Cont’d)
Management has a credit policy in place and the exposure to credit risk is monitored on an
ongoing basis. As at the end of the reporting period, the maximum exposure to credit risk arising
from receivables is represented by the carrying amounts in the statements of financial position.
Management has taken reasonable steps to ensure that receivables that are neither past due nor
impaired are measured at their realisable values. A significant portion of these receivables are
regular customers that have been transacting with the Group. The Group uses ageing analysis
to monitor the credit quality of the receivables. Any receivables having significant balances past
due more than 120 days, which are deemed to have higher credit risk, are monitored individually.
The ageing analysis of trade receivables as at the end of the reporting period are as follows:
GROUP
2014
2013
RM
RM
Neither past due nor impaired
1,365,802 1,724,606
Past due 0 - 30 days not impaired
1,252,300 1,628,524
Past due 31 - 120 days not impaired
674,900 3,651,410
Past due more than 120 days not impaired
438,245 3,085,323
2,365,445 8,365,257
Impaired
92,123
92,123
3,823,370 10,181,986
i)
Receivables that are neither past due nor impaired
Trade receivables that are neither past due nor impaired are creditworthy receivables with
good payment records with the Group.
None of the Group’s trade receivables that are neither past due nor impaired have been
renegotiated during the financial year.
ii)
Receivables that are past due but not impaired
The Group has trade receivables amounting to RM2,365,445 (2013: RM8,365,257) that
are past due at the reporting date but not impaired.
These receivables are unsecured. Management is confident that these receivables are
recoverable as these accounts are still active.
Asia Media Group Berhad Annual Report 2014
81
NOTES TO THE FINANCIAL STATEMENTS
(Cont’d)
