FGV Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 278 FGV HOLDINGS BERHAD EXAMINED OUR NUMBERS 28 AMOUNTS DUE FROM/(TO) A SIGNIFICANT SHAREHOLDER, SUBSIDIARIES, JOINT VENTURES, AN ASSOCIATE AND OTHER RELATED COMPANIES (CONTINUED) (a) Reconciliation of loss allowance (continued) Non-trade amounts due from joint ventures using general 3 stage approach The loss allowance for non-trade amounts due from joint ventures as at 31 December 2018 reconciles to the opening loss allowance for that provision as follows: Performing RM’000 Under- performing RM’000 Non- performing RM’000 Total RM’000 Opening loss allowance as at 1 January 2018 (calculated under MFRS 9) - - 27,740 27,740 Loss allowance for the year - - 20,690 20,690 Closing loss allowance as at 31 December 2018 - - 48,430 48,430 The following table contains an analysis of the credit exposure non-trade amounts due from joint ventures for which an ECL allowance is recognised, based on individual impairment assessment:- Performing RM’000 Non- performing RM’000 Total RM’000 Gross carrying amount 47,000 48,430 95,430 Individual assessment - (48,430) (48,430) Carrying amount (net of loss allowance) 47,000 - 47,000 In the previous financial year, the impairment of significant shareholder, joint ventures and other related companies were assessed individually based on the incurred loss model and the estimated impairment losses were recognised in a separate provision for impairment. The Group considered that there was evidence of impairment if any of the following indicators were present: - significant financial difficulties of the debtor - probability that the debtor will enter bankruptcy or financial reorganisation, and - default or late payments. Receivables for which an impairment provision was recognised were written off against the provision when there was no expectation of recovering additional cash.