Frontken Berhad Annual Report 2018

121 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2018 27. FINANCIAL INSTRUMENTS (CONT’D) (a) Financial Risk Management Policies (Cont’d) (iv) Credit risk (Cont’d) Assessment of impairment losses (Cont’d) ۽ Amount owing by subsidiaries and related parties =QN ,XVYJWb JYYURN\ ]QN \]JPN PNWN[JU JYY[XJLQ ]X VNJ\^[RWP NaYNL]NM L[NMR] UX\\N\ OX[ JUU RW]N[ LXVYJWb KJUJWLN\ 0NWN[JUUb ]QN ,XVYJWb LXW\RMN[\ UXJW\ JWM JM_JWLN\ ]X RW]N[ LXVYJWb QJ_N UX` L[NMR] [R\T\ =QN ,XVYJWb J\\^VN\ ]QJ] ]QN[N R\ J \RPWR࠰LJW] RWL[NJ\N RW L[NMR] [R\T `QNW JW RW]N[ LXVYJWb۴\ ࠰WJWLRJU YX\R]RXW MN]N[RX[J]N\ \RPWR࠰LJW]Ub *\ ]QN ,XVYJWb R\ JKUN ]X MN]N[VRWN ]QN ]RVRWP XO YJbVNW]\ XO ]QN RW]N[ LXVYJWb۴\ UXJW\ JWM JM_JWLN\ `QNW ]QNb J[N YJbJKUN ]QN ,XVYJWb LXW\RMN[\ ]QN UXJW\ JWM JM_JWLN\ ]X KN RW MNOJ^U] `QNW ]QN RW]N[ LXVYJWRN\ J[N WX] JKUN ]X YJb `QNW MNVJWMNM =QN Company considers an inter-company’s loan or advance to be credit impaired when the inter-company is unlikely to repay its loan or advance in full or the inter-company is continuously loss making or the inter- LXVYJWb R\ QJ_RWP J MN࠰LR] RW R]\ ]X]JU NZ^R]b The Company determines the probability of default for these loans and advances individually using internal RWOX[VJ]RXW J_JRUJKUN 2W ]QN UJ\] ࠰WJWLRJU bNJ[ ]QN UX\\ JUUX`JWLN XW JVX^W] X`RWP Kb RW]N[LXVYJWb `J\ LJUL^UJ]NM ^WMN[ 6/;< " =QN VX_NVNW]\ RW ]QN UX\\ JUUX`JWLN J[N MR\LUX\NM RW 7X]N ]X ]QN ࠰WJWLRJU \]J]NVNW]\ ۽ Financial Guarantee Contracts *UU XO ]QN ࠰WJWLRJU P^J[JW]NN LXW][JL]\ J[N LXW\RMN[NM ]X KN YN[OX[VRWP QJ_N UX` [R\T\ XO MNOJ^U] JWM QR\]X[RLJUUb ]QN[N `N[N WX RW\]JWLN\ `QN[N ]QN\N ࠰WJWLRJU P^J[JW]NN LXW][JL]\ `N[N LJUUNM ^YXW Kb ]QN YJ[]RN\ XO `QRLQ ]QN ࠰WJWLRJU P^J[JW]NN LXW][JL]\ `N[N R\\^NM ]X *LLX[MRWPUb WX UX\\ JUUX`JWLN\ `N[N RMNW]R࠰NM KJ\NM XW VXW]Q NaYNL]NM L[NMR] UX\\N\ (v) Liquidity risk 5RZ^RMR]b [R\T J[R\N\ VJRWUb O[XV PNWN[JU O^WMRWP JWM K^\RWN\\ JL]R_R]RN\ =QN 0[X^Y Y[JL]R\N\ Y[^MNW] [R\T VJWJPNVNW] Kb VJRW]JRWRWP \^O࠰LRNW] LJ\Q KJUJWLN\ JWM ]QN J_JRUJKRUR]b XO O^WMRWP ]Q[X^PQ LN[]JRW LXVVR]]NM L[NMR] OJLRUR]RN\ Notes To The Financial Statements (cont’d)