FGV Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 288 FGV HOLDINGS BERHAD EXAMINED OUR NUMBERS 32 LOANS DUE FROM JOINT VENTURES (CONTINUED) (a) Reconciliation of loss allowance (continued) Past due but not impaired In previous financial year, there were no loans due from joint ventures that were neither past due nor impaired. Impaired and provided for In previous financial year, there were no loans due from joint ventures impaired and provided for. The credit quality of the loans due from joint ventures that were neither past due nor impaired can be assessed to historical information about counterparty default rates: Group 2018 RM’000 2017 RM’000 Group 2 70,201 71,431 Group 1 – new customers (less than 6 months). Group 2 – existing customers (more than 6 months) with no defaults in the past. Group 3 – existing customers (more than 6 months) with some defaults in the past. All defaults were fully recovered. The carrying amount and fair value of the loans due from joint ventures are as follows: Group Carrying amount Fair value 31.12.2018 RM’000 31.12.2017 RM’000 1.1.2017 RM’000 31.12.2018 RM’000 31.12.2017 RM’000 1.1.2017 RM’000 Loans due from joint ventures 70,201 71,431 54,222 70,222 71,446 54,222 The fair value of loans due from joint ventures is based on cash flows discounted using a rate based on the borrowing rate of 6.02% (31.12.2017: 4.96%; 1.1.2017: 4.73%). The fair value of the loans due from joint ventures is a Level 2 computation.