3) FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
(Cont’d)
Credit risk
(Cont’d)
iii) Receivables that are impaired
The Group’s trade receivables and the movement of the allowance accounts used to record
the impairment are as follows:
GROUP
2014
2013
RM
RM
Trade receivables - Nominal amounts
92,123
92,123
Less: Allowance for doubtful debts
(92,123)
(92,123)
–
–
There was no movement in the allowance for impairment losses of receivables during the
financial year.
Trade receivables that are individually determined to be impaired at the reporting date relate
to receivables that are in significant financial difficulties and have defaulted on payments.
These receivables are not secured by any collateral or credit enhancements.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as and
when they fall due.
The Group practises prudent liquidity risk management to minimise the mismatch of financial
assets and liabilities and to maintain sufficient funds for contingent funding requirement of working
capital.
Capital Risk Management
The primary objective of the Group’s capital management is to safeguard the Group’s ability
to continue as a going concern, and to maintain an optimal capital structure so as to provide
returns for shareholders.
The Group manages its capital structure and makes adjustments to it in light of changes in
economic conditions. To maintain or adjust the capital structure, the Group may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. There were no
changes made in the objectives, policies or processes compared to the previous financial year.
The Group is not subject to any externally imposed capital requirements.
Asia Media Group Berhad Annual Report 2014
82
NOTES TO THE FINANCIAL STATEMENTS
(Cont’d)
