FGV Annual Report 2014

27 Receivables (continued) Impaired and provided for As at 31 December 2014, RM5,709,000 of receivables were impaired and provided for (2013: RM5,529,000). Movement of the Group’s provision for impairment of receivables are as follows: Group 2014 RM’000 2013 RM’000 At 1 January 5,529 – Acquisition of a subsidiary – 4,918 Charged to profit or loss 180 611 At 31 December 5,709 5,529 Receivables balances of RM784,361,000 (2013: RM954,849,000) and RM87,975,000 (2013: RM173,470,000) of the Group and of the Company are neither past due nor impaired as they have yet to exceed the credit period. These balances mainly relate to external parties with no recent history of default. The credit quality of receivables that are neither past due nor impaired can be assessed to historical information about counterparty default rates: Group Company 2014 2013 2014 2013 RM’000 RM’000 RM’000 RM’000 Group 1 61,620 18,413 – – Group 2 688,769 921,235 87,975 173,470 Group 3 33,972 15,201 – – 784,361 954,849 87,975 173,470 Group 1 – new customers (less than 6 months). Group 2 – existing customers (more than 6 months) with no defaults in the past. Group 3 – existing customers (more than 6 months) with some defaults in the past. All defaults were fully recovered. The fair value of the receivables excluding the prepayments equals their carrying value, as the impact of discounting is not significant. Introduction Performance Highlights About FGV Reports Financial Statements Others Strategy and Value Creation Performance Review & Progress Foreword to Shareholders Annual General Meeting Annual Report 2014 pg 279