FGV Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 305 01 02 05 03 07 06 04 08 09 ANNUAL INTEGRATED REPORT 2018 EXAMINED OUR NUMBERS 47 LOANS DUE TO SUBSIDIARIES (CONTINUED) Effective finance rate for the loans is as follows: Company 31.12.2018 31.12.2017 1.1.2017 Finance rate Effective finance rate at date of statement of financial position per annum % Finance rate Effective finance rate at date of statement of financial position per annum % Finance rate Effective finance rate at date of statement of financial position per annum % Loans due to subsidiaries Fixed/ Floating 2.23 - 5.50 Fixed/ Floating 2.23 - 5.54 Fixed/ Floating 2.23 - 5.40 The carrying amount and fair value of the loans due to subsidiaries are as follows: Company 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 to subsidiaries 1,104,909 1,102,759 301,005 1,104,057 1,102,692 297,868 The fair value of loans due to subsidiaries is based on cash flows discounted using a rate based on the borrowing rate of 4.5% (31.12.2017: 4.13% - 5.28%; 1.1.2017: 3.84%). The fair value of the loans due to subsidiaries is a Level 2 computation. Cash flows and non-cash changes arising from loans due to subsidiaries financing activities are disclosed in statements of cash flows.