25 FINANCIAL INSTRUMENTS (continued) Credit risk (continued) Movements in allowance for impairment in respect of trade receivables The movement in the allowance for impairment in respect of trade receivables during the year was as follows: Group 2023 2022 $’000 $’000 Balance at 1 January 910 583 Impairment loss recognised 64 412 Amounts written off (150) (22) Translation differences (11) (63) Balance at 31 December 813 910 Other receivables The Group assesses on a forward-looking basis for the expected credit losses associated with financial assets at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. The Group considers that the credit risk for these counterparties has not increased. Amounts due from immediate holding company, subsidiaries, associates, joint ventures, related corporation, affiliated company and non-controlling interests These balances are amounts lent to related parties to satisfy short term funding requirements. The Group and the Company use an approach that is based on an assessment of qualitative and quantitative factors that are indicative of the risk of default (including but not limited to audited financial statements, management accounts and cash flow projections, if available, and applying experienced credit judgement). There is no significant increase in credit risk for these exposures. Therefore impairment on these balances has been measured on the 12-month expected credit loss basis; and the amount of the allowance is insignificant. Guarantees At the reporting date, the Company has issued a guarantee to certain banks in respect of credit facilities granted to subsidiaries and joint ventures (see note 27). These guarantees are subject to the impairment assessment under SFRS(I) 9. The Company has assessed that these subsidiaries and joint ventures have strong financial capacity to meet the contractual cash flow obligations in the near future and hence, does not expect significant credit losses from these guarantees. The Company’s assessment is based on qualitative and quantitative factors that are indicative of the risk of default (including but not limited to audited financial statements, management accounts and cash flow projections, if available, and applying experienced credit judgement). Cash and cash equivalents The Group and Company held cash and cash equivalents of $216.4 million and $0.6 million respectively at 31 December 2023 (2022: $94.8 million and $0.9 million), which represent its maximum credit exposure on these assets. The cash and cash equivalents are held with banks with sound credit ratings. Impairment on cash and cash equivalents has been measured on the 12-month expected loss basis and reflects the short maturities of the exposures. The Group considers that its cash and cash equivalents have low credit risk based on the external credit ratings of the counterparties. The amount of the allowance on cash and cash equivalents was insignificant. Notes to the Financial Statements Year ended 31 December 2023 204 PERENNIAL HOLDINGS PRIVATE LIMITED
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