notes to the financial statements
for the financial year ended 31 December 2014 (Continued)
21 AMOUNTS OWING BY/(TO) ASSOCIATES (CONTINUED)
(a)
Amounts owing by associates (continued)
The movements in the allowance for impairment loss of amounts owing by associates during the financial year are as follows:
Group
2014
2013
RM'000
RM'000
At 1 January
2,686
2,513
Impairment loss recognised
47
47
Impairment loss reversed
(2,157)
-
Effect of exchange rate changes
(42)
126
At 31 December
534
2,686
As at 31 December 2014 and 31 December 2013, the Group has no significant exposure to foreign currency risk for the amounts owing by associates except for
amount of RM23,000 denominated in United States Dollar.
Trade accounts are unsecured, interest free and recoverable within the normal credit period. The advances are unsecured, interest free and recoverable on
demand.
(b)
Amount owing to associate
As at 31 December 2013, the Group’s amount owing to an associate relate to an advance denominated in Euro Dollar, unsecured, interest free and repayable on
demand.
22 AMOUNTS OWING BY/(TO) JOINT VENTURES
(a)
Amounts owing by joint ventures
Group
Company
2014
2013
2014
2013
RM'000
RM'000
RM'000
RM'000
Trade accounts
6,446
3,807
-
-
Interest bearing loan
30,368
23,551
-
-
Advances
6,181
5,665
23
16
Less: Allowance for impairment loss
(592)
(451)
-
-
42,403
32,572
23
16
The Group’s effective interest rate of interest bearing loans as at 31 December 2014 is 3.26% (2013: 3.26%) per annum. The loans and advances are repayable
on demand.
129
Wah Seong Corporation Berhad • Annual Report 2014
