NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2024 7 INVESTMENTS IN AND BALANCES WITH SUBSIDIARIES (CONT’D) The Company assessed the carrying amount of its investments in subsidiaries for indicators of impairment. Based on the assessment, the Company recognised an impairment loss of $10,117,000 (2023: Nil) on its investments in two (2023: Nil) wholly-owned subsidiaries, with one subsidiary in liquidation while the other subsidiary in preparation of liquidation, and considering financial positions of the subsidiaries. The recoverable amounts of the subsidiaries were estimated taking into consideration the fair values of the underlying assets and the liabilities of the subsidiaries. The fair value measurement was categorised as a Level 3 in the fair value hierarchy based on the inputs to the valuation techniques used. The non-trade amounts owing by and to subsidiaries are unsecured. In respect of interest-bearing amounts owing by and to subsidiaries, interest was charged at 1.00% to 6.37% (2023: 1.00% to 6.61%) per annum and at 3.33% to 4.60% (2023: 1.00% to 3.76%) per annum respectively, as at 31 December 2024. The non-trade balances with subsidiaries that are presented as receivable or repayable within one year are receivable or repayable on demand. The non-trade amounts owing by subsidiaries receivable after one year are loans to subsidiaries for which settlement is neither planned nor likely to occur in the foreseeable future. These amounts are, in substance, a part of the Company’s net investments in subsidiaries. The non-current amount owing to a subsidiary is repayable by 31 March 2026. Information about the Company’s exposure to credit risk on the amounts owing by subsidiaries is included in note 41. Impairment losses The movements in impairment losses in respect of investments in subsidiaries and amounts owing by subsidiaries during the year are as follows: Amounts owing by subsidiaries Investments in subsidiaries Lifetime ECL – not credit impaired 2024 2023 2024 2023 $’000 $’000 $’000 $’000 At 1 January 11,618 40,837 313,928 257,245 Impairment loss recognised 10,117 – 8,999 56,683 Impairment loss utilised – (29,219) – – At 31 December 21,735 11,618 322,927 313,928 The increase in loss allowance on amounts owing by subsidiaries was due to a decline in the financial positions of the subsidiaries. Further details regarding the Group’s subsidiaries are set out in note 43. FINANCIALS CITY DEVELOPMENTS LIMITED 132
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