FGV Audited Financial Statements 2019

169 01 S E C T I O N NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 AUDITED FINANCIAL STATEMENTS 2019 29 AMOUNTS DUE FROM/(TO) A SIGNIFICANT SHAREHOLDER, SUBSIDIARIES, JOINT VENTURES, AN ASSOCIATE AND OTHER RELATED COMPANIES (CONTINUED) (a) Reconciliation of loss allowance (continued) Trade amounts due from joint ventures, a significant shareholder and other related companies using simplified approach The loss allowance for trade amounts due from joint ventures, a significant shareholder and other related companies as at 31 December 2019 reconciles to the opening loss allowance balance as follows: Group Non-credit impaired RM’000 Credit impaired RM’000 Total RM’000 Opening loss allowance as at 1 January 2018 26,824 3,902 30,726 Increase in loss allowance (net) 52,037 8,319 60,356 Loss allowance as at 31 December 2018 78,861 12,221 91,082 (Decrease)/increase in loss allowance (68,790) 10,490 (58,300) Closing loss allowance as at 31 December 2019 10,071 22,711 32,782 The following table contains an analysis of the credit exposure trade amounts due from joint ventures, a significant shareholder and other related companies for which an ECL allowance is recognised, based on individual impairment assessment: Non-credit impaired RM’000 Credit impaired RM’000 Total RM’000 31 December 2019 Gross carrying amount 331,797 60,483 392,280 Individual assessment (10,071) (22,711) (32,782) Carrying amount (net of loss allowance) 321,726 37,772 359,498 Non-credit impaired RM’000 Credit impaired RM’000 Total RM’000 31 December 2018 Gross carrying amount 723,953 48,579 772,532 Individual assessment (78,861) (12,221) (91,082) Carrying amount (net of loss allowance) 645,092 36,358 681,450 The decrease in the loss allowance for the financial year relates to decrease of ECL from amount due from a significant shareholder and other related companies due to settlement of the long outstanding amounts during the financial year.