NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) C14 Financial risk management objectives and policies (continued) Exposure to credit risk As at 31 December 2024, 22% (2023: 22%) of trade receivables and contract assets relate to three major customers of the Group. The table below analyses the trade receivables and contract assets by the Group’s main reportable segments: Carrying amount Group 2024 2023 $’000 $’000 Commercial Aerospace 943,987 834,714 Defence & Public Security 2,000,497 1,910,020 Urban Solutions & Satcom 1,066,491 1,087,941 4,010,975 3,832,675 A summary of the Group’s exposures to credit risk for trade receivables and contract assets is as follows: 2024 2023 2022 Not credit impaired Credit impaired Not credit impaired Credit impaired Not credit impaired Credit impaired $’000 $’000 $’000 $’000 $’000 $’000 Group Receivables measured at lifetime ECL: Trade receivables and contract assets 4,010,975 45,497 3,832,675 68,820 3,263,167 70,751 Loss allowance – (45,497) – (68,820) – (70,751) Total 4,010,975 – 3,832,675 – 3,263,167 – Expected credit loss assessment Trade receivables and contract assets For specific trade receivables and contract assets identified by the Group to be credit impaired, the Group recognised a loss allowance equal to lifetime ECL. Hence, the recoverability of these balances is assessed separately from the allowance matrix. For the remaining trade receivables and contract assets, the Group uses an allowance matrix to measure the ECL of trade receivables and contract assets from its customers. Loss rates are calculated using a ‘roll rate’ method based on the probability of a receivable progressing through successive stages of delinquency to write-off. Roll rates are calculated separately for exposures in different segments based on the common credit risk characteristics. In calculating the ECL rates, the Group considers historical loss rates for each category of customers and adjusts to reflect current and forward-looking macroeconomic factors affecting the ability of the customers to settle the receivables. Based on this assessment, the Group has concluded that the ECLs from these trade receivables and contract assets are immaterial. 189 CORPORATE OVERVIEW PERFORMANCE REVIEW SUSTAINABILITY FINANCIAL REPORT
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