the Company have therefore concluded that the expected loss rates for trade receivables are a reasonable approximation of the loss rates of the trade contract assets. NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 FINANCIAL STATEMENTS Sec 5 315 45 FINANCIAL INSTRUMENTS (CONTINUED) (b) Financial risk management (continued) Credit risk (continued) (i) Trade receivables and trade contract assets (continued) Impairment losses (continued) The expected loss rates are based on the payment profiles of sales over a period of 14 months and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. The Group and the Company have identified growth rates of real Gross DomesticProduct (‘GDP’) of Malaysia to be the most relevant factor, and accordingly, adjusts the historical loss rates based on the expected changes in this factor. As at 31 December 2023, for non-government customers, a combination of growth rates of real GDP and inflation rates were identified as the most relevant factors. On that basis, the loss allowance was determined for both trade receivables and trade contract assets as reflected in the earlier tables. During the financial year, the collection trends of the Group’s and the Company’s trade receivables continued to improve. The Group and the Company revised the expected cash flows from their trade receivables which resulted in a reversal of impairment loss. The Group and the Company also written off the inactive trade receivables which had been fully impaired in the previous financial years, therefore there was no impact to the net trade receivables. The opening loss allowances for trade receivables and trade contract assets reconciled to the closing loss allowances are as follows: (a) Trade receivables Group Company 2023 RM’million 2022 RM’million 2023 RM’million 2022 RM’million As at the beginning of the