Annual Report 2020

216 Transport International Holdings Limited 2020 Annual Report Notes to the Financial Statements (Expressed in Hong Kong dollars unless otherwise indicated) 22 Accounts receivable 2020 2019 $’ 000 $’ 000 Trade and other receivables 643,978 625,958 Interest receivable 16,901 41,056 Less: loss allowance (note 22(b)) (360) (360) 660,519 666,654 All of the accounts receivable are expected to be recovered within one year. (a) Ageing analysis Included in accounts receivable are trade receivables (net of loss allowance) with the following ageing analysis, based on the due date, as of the end of the reporting period: 2020 2019 $’ 000 $’ 000 Current 41,149 49,787 Less than 1 month past due 59,678 41,209 1 to 3 months past due 35,466 17,622 More than 3 months past due 28,988 10,042 165,281 118,660 According to the Group’s credit policy set out in note 32(a) to the financial statements, the credit period granted to customers is generally between 30 days and 90 days. Therefore, all the balances which are not past due as disclosed above are within three months from the invoice date. (b) Loss allowance of trade receivables Loss allowance in respect of trade receivables are recorded using an allowance account unless the Group is satisfied that recovery of the amount is remote, in which case the loss allowance is written off against trade receivables directly (see note 1(n)(i)). No movement in the loss allowance account in respect of trade receivables during the year: 2020 2019 $’ 000 $’ 000 Balance at 1 January and 31 December 360 360 Loss allowance of receivables are measured as the present value of all expected cash shortfalls (i.e. the difference between the cash flows due to the Group in accordance with the contract and the cash flows that the Group expects to receive) (see note 1(n)(i)).