Positioning for the Future | 141
Appendix
Notes to the Financial Statements
Year ended 31 December 2014
6
SUBSIDIARIES
(cont’d)
(a) Unquoted shares, at cost (cont’d)
(iii) Movements in allowance for impairment loss were as follows
The Company
Note
2014
$’000
2013
$’000
At 1 January
(278,992)
(87,459)
Allowance during the year
27(c)(iii)
(9,832)
(191,961)
Reversal of allowance during the year
27(a)
49,760
–
Allowance utilised upon disposal of a subsidiary
–
428
At 31 December
(239,064)
(278,992)
The allowance for impairment loss amounting to $9.8 million for 2014 (2013 $192.0 million) was
recognised in respect of the Company’s investments in certain subsidiaries as a result of losses
incurred by these subsidiaries in their underlying investments. These investments are mainly in the
non-core markets and the Group has taken impairments on the value of these investments in view
of the deteriorating economic condition of these markets. The recoverable amounts for each of the
relevant subsidiaries were estimated based on the higher of the value in use calculations using cash
now projections based on forecasts covering a three-year period, or the fair value of the net assets as
at balance sheet date.
In 2014, a reversal of impairment of $49.8 million was recognised in respect of a subsidiary as a result
of an increase in the recoverable amount. The recoverable amount was determined based on fair
value less costs of disposal. The fair value measurement was estimated using the net tangible assets
and categorised as Level 3 on the fair value hierarchy. The higher recoverable amount is due to better
operating performance of the subsidiary as a result of the improved market conditions in the country
where the subsidiary operates.
(iv) The movements in allowances for doubtful receivables in respect of the amounts due from subsidiaries
were as follows
The Company
Note
2014
$’000
2013
$’000
At 1 January
(259,438)
(186,247)
Allowance during the year
(22,197)
(73,191)
Reversal of allowance during the year
27(a)
22,937
–
At 31 December
(258,698)
(259,438)
The allowance/(reversal of allowance) for doubtful receivables were made based on estimated future
cash now recoveries.
