FGV Audited Financial Statements 2020

28 CONTRACT ASSETS The Group’s contract assets relating to the provision of construction and IT services as at financial year end can be summarised as follows: Group 2020 RM’000 2019 RM’000 Contract assets At 1 January 28,417 33,733 Performance obligations performed 44,540 22,471 Transfer from contract assets to receivables (43,526) (27,787) 29,431 28,417 Loss allowance (1,551) - At 31 December 27,880 28,417 Reconciliation of loss allowance Contract assets amounts using simplified approach The loss allowance for contract assets as at 31 December 2020 reconciles to the opening loss allowance for that provision as follows: Non-credit impaired RM’000 Credit impaired RM’000 Total RM’000 Group Opening loss allowance as at 1 January 2020 - - - Increase in loss allowance (net) 1,551 - 1,551 Closing loss allowance as at 31 December 2020 1,551 - 1,551 The following table contains an analysis of the credit exposure of contract assets for which an ECL allowance is recognised, based on individual impairment assessment: Non-credit impaired RM’000 Credit impaired RM’000 Total RM’000 Group Gross carrying amount at 31 December 2020 29,431 - 29,431 Loss allowance (1,551) - (1,551) Carrying amount (net of loss allowance) at 31 December 2020 27,880 - 27,880 The increase in contract assets’ ECL during the financial year relates to contract assets from current financial year that are non-credit impaired. 144 Notes to the Financial Statements For The Financial Year Ended 31 December 2020 FGV HOLDINGS BERHAD Audited Financial Statement 2020