FGV Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 271 01 02 05 03 07 06 04 08 09 ANNUAL INTEGRATED REPORT 2018 EXAMINED OUR NUMBERS 26 RECEIVABLES (CONTINUED) In previous financial year, receivables balances (excluding prepayments and GST receivable) of RM842,088,000 (1.1.2017: RM1,239,850,000) and RM19,145,000 (1.1.2017: RM21,936,000) 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 excluding prepayments and GST receivable that are neither past due nor impaired can be assessed to historical information about counterparty default rates: Group Company 31.12.2017 RM’000 1.1.2017 RM’000 31.12.2017 RM’000 1.1.2017 RM’000 Group 1 1,048 5,197 - - Group 2 841,040 1,179,150 19,145 21,936 Group 3 - 55,503 - - 842,088 1,239,850 19,145 21,936 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 and GST receivable approximates their carrying values, as the impact of discounting is not significant. 27 CONTRACT ASSETS TheGroup’s contract assets relating to the provision of construction and IT services as at financial year end can be summarised as follows: Group 2018 RM’000 2017 RM’000 Contract assets At 1 January 13,091 17,351 Performance obligations performed 72,826 36,284 Transfer from contract assets to receivables (52,184) (40,544) At 31 December 33,733 13,091