NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 9 INVESTMENTS IN AND BALANCES WITH JOINT VENTURES (CONT’D) Immaterial joint ventures The Group has interests in a number of individually immaterial joint ventures. The following table summarises, in aggregate, the share of profit and other comprehensive income of these immaterial joint ventures that are accounted for using the equity method: Group 2022 2021 $’000 $’000 Carrying amount of interests in individually immaterial joint ventures 1,083,024 1,037,046 Group’s share of: – profit from continuing operations 83,332 76,779 – other comprehensive income 615 4,637 – total comprehensive income 83,947 81,416 The Group’s share of the joint ventures’ commitments and contingent liabilities is as follows: Group 2022 2021 $’000 $’000 Commitments Development expenditure contracted but not provided for in the financial statements 576,059 514,917 Capital expenditure contracted but not provided for in the financial statements 42,666 59,367 9 INVESTMENTS IN AND BALANCES WITH JOINT VENTURES (CONT’D) (a) At the reporting date, included in the carrying amount of the Group’s investments in joint ventures is goodwill amounting to $27.2 million (2021: $28.4 million) relating to the Group’s interests in two (2021: two) joint ventures. (b) The movement in impairment losses in respect of investments in joint ventures are as follows: Group Company 2022 2021 2022 2021 $’000 $’000 $’000 $’000 At 1 January – 806,371 – – Impairment loss utilised – (806,371) – – At 31 December – – – – (c) The non-trade amounts owing by joint ventures are unsecured. In respect of interest-bearing amounts owing by joint ventures, interest at rates ranging from 1.38% to 7.5% (2021: 0.99% to 7.5%) per annum were charged by the Group. The non-trade amounts presented as receivable within one year are receivable on demand. The non-trade amounts owing by joint ventures after one year were loans to joint ventures for which settlement was neither planned nor likely to occur in the foreseeable future. (d) The movements in impairment losses in respect of balances with joint ventures are as follows: Group Company Lifetime ECL Lifetime ECL Note 2022 2021 2022 2021 $’000 $’000 $’000 $’000 At 1 January 4,431 328,595 5,050 5,050 Impairment loss recognised – 6,104 196 – Impairment loss utilised – (8,153) – – Reclassified to other receivables 42 – (329,481) – – Translation differences on consolidation – 7,366 – – At 31 December 4,431 4,431 5,246 5,050 The impairment loss recognised by the Group in prior year related to the impairment loss recognised on the amounts owing by HCP Chongqing Property Development Co., Ltd (“HCP”) and its subsidiaries (“HCP Group”). Following the Group’s disposal of its investment in HCP in prior year, as at 31 December 2021, the amounts owing by HCP Group were classified as other receivables (note 16). Impairment losses recognised were included on the face of the consolidated statement of profit or loss. (e) The non-trade amounts owing to joint ventures are unsecured and repayable on demand. CITY DEVELOPMENTS LIMITED ANNUAL REPORT 2022 FINANCIALS 170 171
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