FGV Audited Financial Statements 2019

173 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 32 LOANS DUE FROM JOINT VENTURES Group 2019 RM’000 2018 RM’000 At 1 January 70,201 71,431 Repayment (22,510) - Provision for impairment (47,171) (2,300) Currency translation differences (520) 1,070 At 31 December - 70,201 The loans are denominated as follows: 2019 RM’000 2018 RM’000 - Ringgit Malaysia - 22,510 - United States Dollar - 47,691 - 70,201 Loans due from joint ventures are unsecured and have financing terms of 180 days with interest rate of 6.02% per annum (2018: 180 days with interest rate of 6.02% per annum). (a) Reconciliation of loss allowance Loans due from joint ventures using general 3 stage approach The loss allowance for loan due from joint ventures as at 31 December 2019 reconciles to the opening loss allowance balance as follows: Performing RM’000 Under- performing RM’000 Non- performing RM’000 Total RM’000 At 1 January 2018 - - - - Increase in loss allowance - 2,300 - 2,300 At 31 December 2018 - 2,300 - 2,300 Transfer to non-performing - (2,300) 2,300 - Increase in loss allowance - - 47,171 47,171 Closing loss allowance as at 31 December 2019 - - 49,171 49,471