Annual Report 2024 2 3 6 NOTES TO THE FINANCIAL STATEMENTS 37 FINANCIAL INSTRUMENTS (CONTINUED) Credit risk (continued) Trade receivables and contract assets (continued) Exposure to credit risk The exposure to credit risk for trade receivables and contract assets at the reporting date by geographic region was as follows: 2024 2023 US$’000 US$’000 Norway 34,818 40,747 Singapore 18,469 – Switzerland 104 127 53,391 40,874 Expected credit loss assessment for customers The Group applies the simplified approach to provide for ECLs for all trade receivables and contract assets. The simplified approach requires the loss allowance to be measured at an amount equal to lifetime ECLs. The Group uses an allowance matrix to measure the ECLs of trade receivables from customers and contract assets. Loss rates are calculated using a ‘roll rate’ method based on the probability of a receivable progressing through successive stages of delinquency to write-off. Roll rates are calculated separately for exposures in different segments based on the following common credit risk characteristics – geographic region and age of customer relationship. Loss rates are based on actual credit loss experience over the past five years. These rates are adjusted to reflect differences between economic conditions during the period over which the historic data has been collected, current conditions and the Group’s view of economic conditions over the expected lives of the receivables. The Group and the Company has assessed that the amount of the allowance on these balances is negligible. The Group and the Company did not have significant overdue or credit impaired trade receivables and contract assets as at reporting date. An analysis of the ageing of trade receivables and contract assets that are not impaired are as follows: 2024 2023 US$’000 US$’000 Current 53,391 40,874
RkJQdWJsaXNoZXIy NTM2MDQ5