TAN CHONG MOTOR HOLDINGS BERHAD
Annual Report 2014
115
NOTES TO THE FINANCIAL STATEMENTS
33. Financial instruments (continued)
33.4 Credit risk (continued)
Receivables (continued)
Impairment losses (continued)
(c) Finance lease receivables
The ageing of finance lease receivables as at the end of the reporting period was:
Gross
Individual
impairment
Collective
impairment
Net
RM’000
RM’000
RM’000
RM’000
Group
2014
Not past due
1,734
-
-
1,734
Past due 1 - 30 days
-
-
-
-
Past due 31 - 90 days
-
-
-
-
Past due more than 90 days
-
-
-
-
1,734
-
-
1,734
2013
Not past due
3,410
-
-
3,410
Past due 1 - 30 days
-
-
-
-
Past due 31 - 90 days
-
-
-
-
Past due more than 90 days
-
-
-
-
3,410
-
-
3,410
Finance lease receivables that are individually determined to be impaired at the reporting date relate to
debtors that are in significant financial difficulties. At the end of the reporting period, there was no indication
that finance lease receivables are not recoverable.
The allowance account in respect of trade receivables, hire purchase receivables and finance lease
receivables are used to record impairment losses. Unless the Group is satisfied that recovery of the amount
is possible, the amount considered irrecoverable is written off against the receivable directly.
Investments and other financial assets
Risk management objectives, policies and processes for managing the risk
Transactions involving derivative financial instruments are entered into with licensed banks only. The Group
also places a significant portion of its excess funds in money market funds and short term deposits with
licensed financial institutions.
