ANNUAL REPORT
2016
.97
NOTES TO THE
FINANCIAL STATEMENTS
24.
FINANCIAL INSTRUMENTS: INFORMATION ON FINANCIAL RISKS (CONT¡¯D)
24D. Credit risk on financial assets
Financial assets that are potentially subject to concentrations of credit risk and failures by counterparties to discharge
their obligations in full or in a timely manner consist principally of cash balances with banks, cash equivalents and
receivables. The maximum exposure to credit risk is: the total of the fair value of the financial assets; the maximum
amount the entity could have to pay if the guarantee is called on; and the full amount of any payable commitments
at the end of the reporting year. Credit risk on cash balances with banks is limited because the counter-parties are
entities with acceptable credit ratings. For credit risk on receivables, an on-going credit evaluation is performed
on the financial condition of the debtors and a loss from impairment is recognised in profit or loss. The exposure
to credit risk with customers is controlled by setting limits on the exposure to individual customers and these
are disseminated to the relevant persons concerned and compliance is monitored by management. There is no
significant concentration of credit risk on receivables, as the exposure is spread over a large number of counter-
parties and customers.
Note 18 discloses the maturity of the cash and cash equivalents balances.
The group generally does not grant credit terms except for distributors of watches where an average credit term of
30 days is granted. However, the group may grant credit terms to customers on a case by case basis, depending on
the contract value, relationship with the customer and payment track record of the customer. But some customers
take a longer period to settle the amounts.
(a)
Ageing analysis of the age of trade receivable amounts that are past due as at the end of reporting year but
not impaired:
GROUP
2016
$¡¯000
2015
$¡¯000
Trade receivables:
Less than 30 days
927
156
31 to 60 days
164
51
61 to 90 days
283
79
Over 90 days
919
1,318
Total
2,293
1,604
(b)
Ageing analysis as at the end of reporting year of trade receivable amounts that are impaired:
GROUP
2016
$¡¯000
2015
$¡¯000
Trade receivables:
Over 90 days
294
276
Total
294
276
