NOTES TO THE FINANCIAL STATEMENTS
(CONT’D)
31 DECEMBER 2015
16.
INVESTMENTS IN SUBSIDIARIES
Trust
2015
2014
$’000
$’000
Unquoted equity shares, at cost
983,570
981,423
Redeemable preference shares, at cost
789,440
716,852
Quasi equity loans
(1)
22,938
25,242
Less: Allowance for impairment
(49,378)
–
1,746,570
1,723,517
Net book value of subsidiaries
1,670,902
1,723,066
Analysis of above amount denominated in non-functional currency:
United States Dollars
3,578
5,882
Indonesian Rupiah
1,223,752
1,262,166
(1)
The quasi-equity loans, which are extended to three Singapore subsidiaries, are unsecured and interest-
free with no fixed repayment terms. They are, in substance, part of the Trust’s net investment in the
subsidiaries.
Movements in allowance for impairment:
Balance at beginning of the year
–
–
Impairment loss charged to profit or loss
(49,378)
–
Balance at the end of the year
(49,378)
–
The list of the subsidiaries is in Note 36.
The management has assessed that there are indicators of impairment for those subsidiaries with shortfalls
between the cost of investment translated at year-end rates and the revalued net asset value (“NAV”). Such
shortfalls would indicate that the NAV of these subsidiaries have declined against their costs. Based on the above
assessment, the management had made an allowance for impairment loss of $49,378,000 in the Trust’s financial
statements as at 31 December 2015.
ANNUAL REPORT 2015
107
