CITY DEVELOPMENTS LIMITED ANNUAL REPORT 2021 FINANCIALS 220 221 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021 YEAR ENDED 31 DECEMBER 2021 41 FINANCIAL INSTRUMENTS (CONT’D) (i) Credit risk (cont’d) Group Company Lifetime ECL Lifetime ECL Note 2021 2020 2021 2020 $’000 $’000 $’000 $’000 Allowance for impairment on other receivables At 1 January 5,129 5,291 1,129 1,129 Reclassified from amounts owing by joint ventures 9 329,481 – – – Translation differences on consolidation 1,866 (162) (13) – At 31 December 336,476 5,129 1,116 1,129 There is no impairment loss on contract assets. Non-trade amounts due from subsidiaries, associates and joint ventures The Group and the Company held non-trade receivables from its associates and joint ventures which were lent to associates and joint ventures to meet their funding requirements. In addition, the Company held non-trade receivables from its subsidiaries which were lent to the subsidiaries to meet their funding requirements. Impairment on these balances has been measured on the 12-month and lifetime expected loss basis. Except as disclosed in note 9, the Group uses an approach that is based on an assessment of qualitative and quantitative factors that are indicative of the risk of default, including but not limited to, financial statements of the entities, and applying credit judgement. The amount of allowance on the non-trade amounts due from associates was negligible. The amounts of the allowances on the non-trade amounts due from subsidiaries and joint ventures are set out in notes 7 and 9 respectively. Debt investments The Group limits its exposure to credit risk on investments held by investing only with counterparties that are of acceptable credit quality. The exposure to credit risk for debt investments at the reporting date by geographic region was as follows: Mandatorily at FVTPL At amortised cost Carrying amount Gross amount Lifetime ECL (credit impaired) Carrying amount $’000 $’000 $’000 $’000 2021 China – 311,512 (293,769) 17,743 Singapore 142,486 – – – Australia 32,923 – – – 175,409 311,512 (293,769) 17,743 2020 China 10,724 305,394 (288,000) 17,394 Singapore 146,812 – – – Australia 34,390 – – – 191,926 305,394 (288,000) 17,394 The amount of the allowance on these balances is set out in note 10. 41 FINANCIAL INSTRUMENTS (CONT’D) (i) Credit risk (cont’d) Derivatives Derivatives are only entered into with bank and financial institution counterparties with sound credit ratings. As at the reporting date, the Group has cross-currency swaps, forward exchange contracts and interest rate swaps with a total notional amount of $536,104,000 (2020: $590,258,000), $1,308,617,000 (2020: $1,331,976,000) and $88,036,000 (2020: $795,178,000) respectively. The Company has cross-currency swaps, forward exchange contracts and interest rate swaps with a total notional amount of $378,777,000 (2020: $436,021,000), $1,308,617,000 (2020: $1,319,688,000) and $Nil (2020: $126,091,000) respectively. Group Company Note 2021 2020 2021 2020 $’000 $’000 $’000 $’000 Derivative financial assets Cross currency swaps 8,788 451 4,026 451 Forward exchange contracts 17,485 8,121 17,485 8,121 26,273 8,572 21,511 8,572 Non-current 11 4,762 451 – 451 Current 15 21,511 8,121 21,511 8,121 26,273 8,572 21,511 8,572 Derivative financial liabilities Cross currency swaps 14,936 15,095 14,928 5,302 Forward exchange contracts – 6,571 – 6,206 Interest rate swaps 941 8,669 – 448 15,877 30,335 14,928 11,956 Non-current 27 1,295 14,552 346 845 Current 30 14,582 15,783 14,582 11,111 15,877 30,335 14,928 11,956
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