NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 7 INVESTMENTS IN AND BALANCES WITH SUBSIDIARIES (CONT’D) Impairment losses The movements in impairment losses in respect of investments in subsidiaries and amounts owing by subsidiaries during the year are as follows: Investments in subsidiaries Amounts owing by subsidiaries Lifetime ECL – not credit impaired 2023 2022 2023 2022 $’000 $’000 $’000 $’000 At 1 January 40,837 32,287 257,245 183,563 Impairment loss recognised – 10,277 56,683 73,682 Impairment loss utilised (29,219) (1,727) – – At 31 December 11,618 40,837 313,928 257,245 The increase in loss allowance on amounts owing by subsidiaries was due to a decline in the financial positions of the subsidiaries. Further details regarding the Group’s subsidiaries are set out in note 43. 8 INVESTMENTS IN AND BALANCES WITH ASSOCIATES Group Company Note 2023 2022 2023 2022 $’000 $’000 $’000 $’000 Investments in associates Investments in associates 1,355,520 1,276,368 – – Impairment loss (3,000) (12,655) – – 1,352,520 1,263,713 – – Balances with associates Amounts owing by associates receivable within 1 year: – trade 10,417 9,520 1,289 1,540 – non-trade, interest-bearing 7,195 1,188 – – – non-trade, interest free 455 528 – – 18,067 11,236 1,289 1,540 Impairment losses (362) (320) – – 16 17,705 10,916 1,289 1,540 Amount owing to an associate payable within 1 year: – trade 4,513 4,790 – 6 – non-trade, interest-free 2,419 2,605 – – 30 6,932 7,395 – 6 The non-trade amounts owing by associates are unsecured and repayable on demand. In respect of interest-bearing amounts owing by associates, interest of 6.00% (2022: 6.00%) per annum was charged by the Group. The non-trade amount owing to an associate is unsecured and repayable on demand. 8 INVESTMENTS IN AND BALANCES WITH ASSOCIATES (CONT’D) Included in the Group’s investments in associates are investments in three associates (2022: three associates) which are listed on the Mainboard of Singapore Exchange Securities Trading Limited (SGX-ST). As at the reporting date, the aggregate carrying amount of these investments was $1,247.9 million (2022: $1,181.6 million) and the fair values based on the published price quotation (Level 1 in the fair value hierarchy) was $980.6 million (2022: $950.6 million). In respect of these associates, management had assessed the recoverable amounts of the investments and determined that as their net asset values based on the latest available audited financial statements of the associates are higher than the carrying amount as at the reporting date, no impairment loss for these investments is considered necessary. The movements in impairment losses in respect of investments in associates and amounts owing by associates are as follows: Investments in associates Amounts owing by associates Lifetime ECL – not credit-impaired 2023 2022 2023 2022 $’000 $’000 $’000 $’000 Group At 1 January 12,655 15,399 320 – Impairment loss recognised – – 57 339 Impairment loss utilised (9,480) (1,703) – – Translation differences on consolidation (175) (1,041) (15) (19) At 31 December 3,000 12,655 362 320 Accounting for investment in CDLHT In May 2022, the Company distributed 144,191,823 units in CDLHT (“CDLHT units”) that it held to its ordinary shareholders, which resulted in CDLHT, which was then a subsidiary, becoming an associate of the Group thereafter (notes 39 and 44). The Group’s retained interest in CDLHT was remeasured to fair value and accounted for as a business combination, which required the purchase price to be allocated to the fair value of the identifiable assets acquired and liabilities assumed, including any contingent liabilities (purchase price allocation or “PPA”). A significant portion of the purchase price was allocated to CDLHT’s underlying property portfolio comprising property, plant and equipment and investment properties, based on the valuation amounts in the valuation reports undertaken by an internal valuer with appropriate recognised professional qualifications and experience in the location and category of the properties being valued. The valuations of the property, plant and equipment and investment properties involve judgement in determining both the valuation methods to be used and the key assumptions to be applied. The valuations were sensitive to the key assumptions applied and a change in assumptions may have a significant impact on the valuations. FINANCIALS FINANCIALS ANNUAL REPORT 2023 CITY DEVELOPMENTS LIMITED 171 170
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