Asia-Pacific Strategic Investments Limited - Annual Report 2021

Notes to the Financial Statements For the financial year ended 30 June 2021

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Financial risk management (continued)

(b)

Credit risk (continued)

The movements in credit loss allowance are as follows:

Trade receivables

Other receivables

Total

S$’000

S$’000

S$’000

Group 2021 Beginning of financial year

55

1,874 (1,874)

1,929 (1,929)

Written-off

(55)

End of financial year (Note 13)

-

-

-

2020 Beginning of financial year

247

1,874

2,121

Loss allowance recognised during the financial year

16

- -

16

Written-off

(208)

(208)

End of financial year (Note 13)

55

1,874

1,929

(i)

Trade receivables

The Group uses a provision matrix to measure the lifetime expected credit loss (“ECL”) allowance for trade receivables. In measuring the ECL, trade receivables are grouped based on shared credit risk characteristics and days past due. In calculating the ECL rates, the Group considers purely historical loss rates for each category of customers which management is of the view that the historical conditions are representative of the conditions prevailing at the balance sheet date. Trade receivables are written-off when there is no reasonable expectation of recovery. Based on the historical credit loss experience, the Group considers a financial asset as in default if the counterparty fails to make contractual payments within 180 days when they fall due which is derived based on the Group’s historical information, and write-off the financial asset when there is no reasonable ground to recover the receivables after all enforcement activity has been taken by the Group.

ANNUAL REPORT 2021

111