Chemical Company of Malaysia Berhad Annual Report 2019

25. Financial instruments (continued) 25.4Credit risk (continued) (iv) Inter-company loans and advances (continued) Recognition and measurement of impairment losses (continued) The Group and the Company determine the probability of default for these loans and advances individually using internal information available. The following table provides information about the exposure to credit risk and ECLs for subsidiaries’, related companies’ and an associate’s loans and advances as at 31 December. Gross carrying amount Impairment loss allowances Net balance Group 2019 Low credit risk 3,082 - 3,082 2018 Low credit risk 6,092 - 6,092 Company 2019 Low credit risk 34,849 - 34,849 Credit impaired 111,074 (110,998) 76 145,923 (110,998) 34,925 2018 Low credit risk 35,329 - 35,329 Credit impaired 116,963 (112,964) 3,999 152,292 (112,964) 39,328 The movement in the allowance for impairment in respect of subsidiaries’ loans and advances during the year is as follows: Company Lifetime ECL Balance at 1 January 2018 117,419 Net remeasurement of loss allowance (4,455) Balance at 31 December 2018/1 January 2019 112,964 Net remeasurement of loss allowance (1,966) Balance at 31 December 2019 110,998 BUSINESS OVERVIEW OTHER INFORMATION GOVERNANCE STRUCTURE 193 ANNUAL REPORT 2019 FINANCIAL STATEMENTS