28. Financial risk management (continued)
(b)
Credit risk (continued)
(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 and
advances recoverable.
The age analysis of trade receivables and advances recoverable past due but not impaired is as follows:
2016
2015
$'000
$'000
Past due 0 to 3 months
3,448
2,896
Past due over 3 months
1,972
2,889
5,420
5,785
The carrying amounts of trade receivables and advances recoverable determined to be impaired and the
movement in the related allowance for impairment are as follows:
2016
2015
$'000
$'000
Gross amount
4,598
5,815
Less: Allowance for impairment
(4,598)
(5,815)
–
–
Balance at beginning of financial year
5,815
4,920
Currency translation difference
(1,494)
327
Allowance made
277
693
Allowance written back
–
(125)
Balance at end of financial year
4,598
5,815
The Group establishes an allowance for impairment that represents its estimate of incurred losses of trade
and other receivables. This allowance is a specific loss component that relates to individually significant
exposures. The allowance account in respect of trade and other receivables is used to record impairment
losses unless the Group is satisfied that no recovery of the amount owing is possible. At that point, the
financial asset is considered irrecoverable and the amount charged to the allowance account is written off
against the carrying amount of the impaired financial asset.
.139
ASCENDAS india trust ANNUAL REPORT
2015/2016
