FGV Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 287 01 02 05 03 07 06 04 08 09 ANNUAL INTEGRATED REPORT 2018 EXAMINED OUR NUMBERS 32 LOANS DUE FROM JOINT VENTURES Group 2018 RM’000 2017 RM’000 At 1 January 71,431 54,222 Addition - 22,510 Provision for impairment (2,300) - Currency translation differences 1,070 (5,301) At 31 December 70,201 71,431 The loans are denominated as follows: 31.12.2018 RM’000 31.12.2017 RM’000 1.1.2017 RM’000 - Ringgit Malaysia 22,510 22,510 - - United States Dollar 47,691 48,921 54,222 70,201 71,431 54,222 Loans due from joint ventures are unsecured and have financing terms of 180 days with interest rate of 6.02% per annum (31.12.2017: 180 days with interest rate of 4.96% per annum; 1.1.2017: 180 days with interest rate of 4.73% 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 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 At 1 January 2018 - - - - Current year loss allowance - (2,300) - (2,300) Closing loss allowance as at 31 December 2018 - (2,300) - (2,300)