MSM Malaysia Holdings Berhad Annual Report 2020

21 LOANS DUE FROM SUBSIDIARIES (CONTINUED) (d) Reconciliation of loss allowance Loan due from subsidiaries using general 3 stage approach The loss allowance for loan due from subsidiaries as at 31 December 2020 reconciles to the opening loss allowance for that provision as follows: Under- Non- Performing performing performing Total RM’000 RM’000 RM’000 RM’000 Opening loss allowance as at 1 January 2019 (calculated under MFRS 9) - (32,709) - (32,709) Individual financial assets transferred to non-performing (credit-impaired financial assets) (Note 8) - (50) - (50) Reversal of loss allowance (Notes 1a, 8) - 32,340 - 32,340 Closing loss allowance as at 31 December 2019 - (419) - (419) Reversal of loss allowance (Notes 1b, 8) - 419 - 419 Closing loss allowance as at 31 December 2020 - - - - Note 1a: The reversal of loss allowance in the previous financial year of RM32,340,000 was recorded after considering the repayment plan agreed by the Company with the subsidiary and recent repayments that have been received from the Company’s subsidiary. Note 1b: The reversal of loss allowance of RM419,000 is recorded after repayment made during the year. MSM MALAYSIA HOLDINGS BERHAD Annual Repor t 2020 199 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 SUSTAINABILITY REPORT EFFECTIVE LEADERSHIP CORPORATE GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION DETAILS OF THE ANNUAL GENERAL MEETING