31 FINANCIAL RISK MANAGEMENT
(CONT’D)
(b)
Credit Risk
(cont’d)
(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 the Group’s trade receivables past due as at the date of the
statement of financial position but not impaired is as follows:
Group
2014
2013
US$’000
US$’000
Trade receivables past due:
– 0 to 60 days
4,482
5,414
– Over 61 days
614
813
5,096
6,227
The Group’s trade receivables that are impaired at the date of the statement of financial position
and the movement of the allowance account used to record the impairment are as follows:
Group
2014
2013
US$’000
US$’000
Trade receivables
19,233
22,975
Less: Allowance for impairment losses
(3,827)
(3,819)
15,406
19,156
Balance at the beginning of the year
3,819
3,819
Allowances made (Note 8)
8
–
Balance at the end of the year (Note 19)
3,827
3,819
Trade receivables that are individually determined to be impaired at the end of the reporting
period relate to debtors that are in financial difficulties with one debtor filed for bankruptcy in
prior financial year. This receivable is not secured by any collateral or credit enhancements.
(c)
Liquidity Risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting financial obligations due
to shortage of funds. The Group’s exposure to liquidity risk arises primarily from mismatches of the
maturities of financial assets and financial liabilities. The Group’s objective is to maintain a balance
between continuity of funding and flexibility through the use of stand-by credit facilities. In the
management of its liquidity risk, the Group monitors and maintains a level of cash and cash equivalents
deemed adequate by the management to finance the Group’s operations and mitigate the effects of
fluctuations in cash flows.
NOTES TO THE FINANCIAL STATEMENTS
31 December 2014
GLOBAL INVACOM GROUP LIMITED
ANNUAL REPORT 2014
96
