Annual Report 2021

215 2021 Annual Report Transport International Holdings Limited NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 22 Accounts receivable (continued) (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: 2021 2020 $’000 $’000 Current 62,636 41,149 Less than 1 month past due 60,320 59,678 1 to 3 months past due 52,107 35,466 More than 3 months past due 89,425 28,988 264,488 165,281 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: 2021 2020 $’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)).