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Masterskill Education Group Berhad / Annual Report 2012<br />
100<br />
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)<br />
22. FINANCIAl INSTRumENTS (Cont’d)<br />
22.4 Credit risk (Cont’d)<br />
Impairment losses (Cont’d)<br />
other receivables and deposits are neither due nor impaired. Therefore, these are stated at their realisable values.<br />
The movements in allowance for impairment losses of receivables during the financial year were as follows:<br />
Group<br />
2012 2011<br />
Rm’000 Rm’000<br />
At 1 January 17,862 11,689<br />
Impairment loss recognised 8,033 7,116<br />
Impairment loss reversed (1,867) (943)<br />
At 31 December 24,028 17,862<br />
The allowance account in respect of trade receivables is used to record impairment losses. Unless the Group is satisfied<br />
that recovery of the amount is possible, the amount is considered irrecoverable and is written off against the receivable<br />
directly.<br />
Inter company balances<br />
Risk management objectives, policies and processes for managing the risk<br />
The Company provides unsecured loans and advances to subsidiaries. The Company monitors the results of the subsidiaries<br />
regularly.<br />
Exposure to credit risk and credit quality<br />
As at the end of the reporting period, the maximum exposure to credit risk is represented by their carrying amounts in<br />
the statement of financial position.<br />
Impairment losses<br />
As at the end of the reporting period, there was no indication that the advances to the subsidiaries are not recoverable.<br />
The Company does not specifically monitor the ageing of the advances to the subsidiaries.