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110
EC World Real Estate Investment Trust ANNUAL REPORT 2016
NOTES TO THE
Financial Statements
For the Financial Year ended 31 December 2016
23. Financial risk management (continued)
(b) Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Group. The Group’s primary exposure to credit risk arises through its trade and other receivables.
The Group adopts the policy of dealing only with customers of appropriate credit standing and history. For
other financial assets, the Group adopts the policy of dealing only with high credit quality counterparties.
The trade receivables of the Group comprise 1 debtor (2015: 1 debtor) that represent 75% (2015: 67%) of
trade receivables. More than 90% (2015: 70%) of the Group’s trade receivables are due from related parties
which are incorporated in the PRC.
ECW does not have trade receivables balance outstanding as at 31 December 2016 and 31 December 2015.
(i)
Financial assets that are neither past due or impaired
Bank deposits that are neither past due nor impaired are mainly deposits with banks with high credit-
ratings assigned by international credit-rating agencies. Trade receivables that are neither past due nor
impaired are substantially companies with a good collection track record with the Group and Company.
(
ii)
Financial assets that are past due and/or impaired
There is no other class of financial assets that is past due and/or impaired except for trade receivables.
The age analysis of trade receivables past due but not impaired is as follows:
Group
ECW
2016
2015
2016
2015
S$’000
S$’000
S$’000
S$’000
Past due 0 to 3 months
317
4,731
–
–
Past due over 3 months
2,042
3,246
–
–
2,359
7,977
–
–
The carrying amount of trade receivables individually determined to be impaired and the movement in
the related allowance for impairment are as follows:
Group
ECW
2016
2015
2016
2015
S$’000
S$’000
S$’000
S$’000
Past due 0 to 3 months
317
–
–
–
Past due over 3 months
419
218
–
–
736
218
–
–
Less: Allowance for impairment
(736)
(218)
–
–
–
–
–
–
Beginning of the year/period
218
–
–
–
Allowance made
736
218
–
–
End of the year/period
954
218
–
–