Annual Report 2020

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 綜合財務報告附註 184 SHOUGANG CONCORD CENTURY HOLDINGS LIMITED 首長寶佳集團有限公司 4 重大會計估計和判斷 （續） (c) 應收款項減值 本集團根據對違約風險和預期損失 率的假設，對應收賬款計提減值損 失撥備。本集團根據本集團過往歷 史，現有市況及每個報告期末的前 瞻性估計，使用判斷作出該等假設 及選擇預期信貸虧損撥備計算的輸 入數據。 (d) 存貨撥備 存貨乃按成本及可變現淨值兩者 之間較低者入賬。倘有客觀證據顯 示存貨成本或不能收回，則將存貨 成本撇減至可變現淨值。倘存貨損 壞、全部或部份陳舊或售價下跌， 則可能不能收回存貨成本。倘進行 銷售將予產生的估計成本增加，亦 可能導致不能收回存貨成本。 於綜合損益表撇銷的金額為存貨的 賬面值與可變現淨值之間的差額。 於釐定可收回的存貨成本時須作出 重大判斷。於作出有關判斷時，本 集團會評估（其中包括）以任何方式 收回金額的時間及情況。年內，過 往年度撇減的若干存貨以高於它們 的可變現淨值出售，該存貨撥備因 此被撥回。 4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (continued) (c) Impairment of trade receivables The Group makes provision for impairment loss on trade receivables based on assumptions about risk of default and expected loss rates. The Group uses judgement in making these assumptions and selecting the inputs to the expected credit losses allowance calculation, based on the Group’s past history, existing market conditions as well as forward-looking estimates at the end of each reporting period. (d) Provision for inventories Inventories are carried at the lower of cost and net realisable value. The cost of inventories is written down to net realisable value when there is an objective evidence that the cost of inventories may not be recoverable. The cost of inventories may not be recoverable if those inventories are aged and damaged, if they have become wholly or partially obsolete, or if their selling prices have declined. The cost of inventories may also not be recoverable if the estimated costs to be incurred to make the sales have increased. The amount written off in the consolidated statement of profit or loss is the difference between the carrying value and net realisable value of the inventories. In determining whether the inventories can be recoverable, significant judgement is required. In making this judgement, the Group evaluates, among other factors, the duration and extent by all means to which the amount will be recovered. During the year, certain inventories written down in prior years have been subsequently sold at prices higher than their then net realisable value. Provision regarding these inventories have been reversed.