Positioning for the Future | 145
Appendix
Notes to the Financial Statements
Year ended 31 December 2014
7
ASSOCIATES
The Group
2014
$’000
2013
$’000
Restated
(a) Investment in associates
8,059,963
8,424,435
Less
Allowance for impairment loss
(50,514)
(58,563)
8,009,449
8,365,872
Add
Amounts due from associates
Loan accounts
- interest free
240,530
313,804
- interest bearing
539,720
331,289
780,250
645,093
8,789,699
9,010,965
Less
Allowance for doubtful receivables
–
(54)
8,789,699
9,010,911
(i) Movements in allowance for impairment loss were as follows
The Group
Note
2014
$’000
2013
$’000
At 1 January
(58,563)
(28,049)
Allowance made during the year
27(c)(iii)
(60,103)
(50,514)
Allowance utilised during the year
68,152
20,000
At 31 December
(50,514)
(58,563)
(ii) The loans to associates form part of the Group’s net investment in associates. These loans are unsecured
and settlement is neither planned nor likely to occur in the foreseeable future.
(iii) As at 31 December 2014, the effective interest rate for the loans to associates ranged from 1.47% to
1.50% (2013 2.09%) per annum.
(iv) Loan accounts include an amount of approximately $331.3 million (2013 $331.3 million), the repayment
of which is subordinated to that of the external borrowings of an associate.
