NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2024 41 FINANCIAL INSTRUMENTS (CONT’D) (i) Credit risk (cont’d) Movements in allowance for impairment in respect of trade and other receivables and accrued receivables The movements in the allowance for impairment in respect of trade and other receivables (excluding amounts owing by subsidiaries (note 7), associates (note 8) and joint ventures (note 9)) and accrued receivables during the year are as follows: Group Lifetime ECL Company Lifetime ECL Note 2024 2023 2024 2023 $’000 $’000 $’000 $’000 Allowance for impairment on trade receivables and accrued receivables At 1 January 31,246 35,637 150 82 Impairment loss recognised 14,515 7,142 14 68 Impairment loss utilised (18,425) (9,276) (11) – Acquisition of subsidiaries 144 – – – Translation differences on consolidation 803 (2,257) – – At 31 December 28,283 31,246 153 150 Allowance for impairment on other receivables At 1 January 380,857 389,091 985 1,048 Impairment loss recognised 3,220 743 – – Impairment loss utilised (56) – – – Translation differences on consolidation 9,657 (8,977) 61 (63) At 31 December 16 393,678 380,857 1,046 985 There is no impairment loss on contract assets. At the reporting date, included in the allowance for impairment on other receivables is an amount of $381.7 million (2023: $374.0 million) relating to amounts owing by HCP Group, as described below. Impairment of amounts owing by HCP Group 2024 There was no major development on the process of bankruptcy reorganisation of Sincere Property Group in 2024, with no reorganisation plan being firmed up. As at 31 December 2024, Sincere Property Group remained under bankruptcy reorganisation. As at 31 December 2024, the Group assessed that the amounts owing by HCP Group remained to be credit-impaired. The Group assessed the lifetime ECL to be recognised, taking into consideration the latest status of bankruptcy reorganisation of Sincere Property Group based on available information, prevailing market conditions and price trends of corporate bonds issued by other China real estate developers that face similar debt and liquidity challenges as those faced by Sincere Property Group. Based on the assessment undertaken, the amounts owing by HCP Group remained fully impaired as at 31 December 2024. FINANCIALS CITY DEVELOPMENTS LIMITED 176
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