-Liabilities)/ without defaulting on loan repayments Dormant/History of default • Amounts due from associates/joint ventures/investment in unquoted debt security Positive operating cash flows/ Net assets (T otal Assets - T otal Liabilities) Negative operating cash flows and net liabilities (T otal Assets - T otal Liabilities)/No current default History of default and currently defaulted • RJO debtors Covered by indent/ downpayment/Letter of Undertaking (‘LOU’) No indent/downpayment/LOU Accident cases • Sundry deposits for rental spaces Active contracts Inactive contracts and amounts outstanding less or equal to 12 months Inactive contracts and amounts outstanding more than 12 months • Rental receivables (net deposits) Active contracts and amounts outstanding less or equal to 3 months Active contracts and amounts outstanding more than 3 months Inactive contracts • Staff loans/advances Current employees Ex-employeeswith no default in payment Ex-employees with default in payment 45 FINANCIAL INSTRUMENTS (CONTINUED) NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 TENAGA NASIONAL BERHAD Integrated Annual Report 2023 306 Accounting Policy (continued) Financial instruments comprise financial assets and financial liabilities as below: (continued) Financial assets (continued) (d) Impairment (continued) When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Group and the Company consider reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group’s and the Company’s historical experience and informed credit assessment including forward looking information, where available. The gross carrying amount of a financial asset is written off (either partially or fully) to the extent that there is no realistic prospect of recovery. This is generally the case when either the Group or the Company determine that