NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2021 22. TRADE RECEIVABLES As at 31 December As at 31 December 2021 2020 US$’000 US$’000 Rental income receivables 6,567 5,828 Management fees due from the joint ventures of the Group 15,945 21,719 Management fees due from funds and REITs managed by the Group 74,342 58,031 Construction income receivables 28,308 8,374 Solar energy income receivables 806 721 125,968 94,673 The Group’s trading terms with its customers are mainly on credit, except for new customers, where payment in advance is normally required. The Group seeks to maintain strict control over its outstanding receivables to minimize credit risk. Overdue balances are reviewed regularly by senior management. In view of the aforementioned and the fact that the Group’s trade receivables related to various diversified customers, there is no significant concentration of credit risk. The Group does not hold any collateral or other credit enhancements over its trade receivable balances. The balances of trade receivables are non-interest-bearing. An aging analysis of the trade receivables as at 31 December 2021 and 2020, based on the invoice date and net of loss allowance, is as follows: As at 31 December As at 31 December 2021 2020 US$’000 US$’000 Within 90 days 125,339 93,950 91 to 180 days 540 48 Over 180 days 89 675 Total 125,968 94,673 The Group has applied the simplified approach to providing impairment for trade receivables prescribed by IFRS 9, which permits the use of the lifetime expected loss provision for all trade receivables. To measure the ECLs, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The ECLs below also incorporate forward-looking information. The impairment as of 31 December 2021 and 2020 is determined as follows: 31 December 31 December 2021 2020 Current Current Expected credit loss rate <0.001% <0.001% Gross carrying amount (US$’000) 125,968 94,673 Impairment (US$’000) – – E S R C A Y M A N L I M I T E D A N N U A L R E P O R T 2 0 2 1 197
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