Company: TGE
Filing Date: 2025-02-19
Form Type: DRS
Source: 0001213900-25-015012
Chunk: 512

Company: Generation Essentials Group
Filing Date: 2025-02-19
Form: DRS
Chunk 512
---
 considers that the Group’s credit risk is significantly reduced. F-70

WORLD MEDIA AND ENTERTAINMENT UNIVERSAL INC.
NOTES TO THE COMBINED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2022 and 2023 and
six months ended June 30, 2023 AND 2024 33.FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (cont.) The Group performs impairment assessment under ECL model on other accounts receivable collectively and grouped based on shared credit risk characteristics by reference to the Group’s past due status of outstanding balances, nature, size and industry of debtors and external credit ratings. The Group assesses the ECL of accounts receivable based on historical observed default rates over the expected life of the debtors and forward -lookinginformation (including macroeconomic data such as GDP growth and unemployment rate) that is available without undue cost or effort. Bank balances and restricted cash Credit risk on bank balances and restricted cash is limited because the counterparties are reputable banks with high credit ratings assigned by international credit agencies. The Group assessed 12 -monthECL for bank balances and restricted cash by reference to information relating to probability of default and loss given default of the respective credit rating grades published by external credit rating agencies. Based on the average loss rates, the 12 -monthECL on bank balances and restricted cash is insignificant and therefore no loss allowance was recognized. Amounts due from joint ventures The Group regularly evaluates the business performance of joint ventures. The Group’s credit risks in these balances are considered low due to the strong financial positions of these entities. The management believes that there are no significant increases in credit risk of these amounts since initial recognition and the Group provided impairment based on 12 -monthECL. The Group assessed the ECL for amounts due from joint ventures to be insignificant and thus no loss allowance is recognized. Deposits and other receivables For deposits and other receivables, the Group makes periodic individual assessment on the recoverability of other receivables and deposits based on historical settlement records, past experience, and also quantitative and qualitative information that is reasonable and supportive forward -lookinginformation. The Group believes that there is no significant increase in credit risk of these amounts since initial recognition and the Group provided impairment based on 12 -monthECL. For year ended December 31, 2022, the Group recognized ECL on deposits and other receivables of US$501,000 and there is no movement on