NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2022 (CURRENCY - SINGAPORE DOLLARS UNLESS OTHERWISE STATED) C14 Financial risk management objectives and policies (continued) Expected credit loss assessment (continued) The movement in the allowance for impairment in respect of trade receivables and contract assets during the year were as follows: Lifetime ECL Group 2022 $’000 2021 $’000 At 1 January 82,811 104,648 (Reversal of)/impairment loss recognised (3,930) 29,828 Amounts written off (5,942) (52,777) Acquisition of subsidiaries 273 – Disposal of subsidiaries – (13) Translation difference (2,461) 1,125 At 31 December 70,751 82,811 Bank balances and other liquid funds Bank balances and other liquid funds are placed with financial institutions, which mainly have long-term rating of A3 by Moody’s or A- by Standard & Poor’s or the equivalent by a reputable credit rating agency. Impairment on bank balances and other liquid funds has been measured on the 12-month expected loss basis and reflects the short maturities of the exposures. The Group considers that its bank balances and other liquid funds to have low credit risk based on the external credit ratings of the counterparties. The amount of the allowance on bank balances and other liquid funds is insignificant. Other financial assets Other financial assets comprise amounts due from related parties and other receivables, which are mostly short-term in nature. Impairment on other financial assets has been measured on the 12-month expected loss basis and reflects the short maturities of exposures. The Group considers its other financial assets to have low credit risk and the amount of the allowance on other financial assets is insignificant. CORPORATE OVERVIEW PERFORMANCE REVIEW SUSTAINABILITY FINANCIAL REPORT 195
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