GHL System Berhad Annual Report 2019

A N N U A L R E P O R T 2 0 1 9 129 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 CONT’D 16. INVESTMENTS IN SUBSIDIARIES (cont’d) (m) The reconciliation of movement in the impairment loss are as follow: Company 2019 2018 RM RM At 1 January 15,738,248 14,663,571 Charge for the financial year 1,341,860 1,074,677 At 31 December 17,080,108 15,738,248 (n) Impairment for advances to subsidiaries are recognised based on the general approach within MFRS 9 using the forward looking expected credit loss model as disclosed in Note 20 to the financial statements. Movements in the impairment allowance for advances to subsidiaries are as follows: 2019 12-month ECL Lifetime ECL - not credit impaired Lifetime ECL - credit impaired Total Company RM RM RM RM At 1 January 2019 - - - - Charge for the financial year - 1,323,761 - 1,323,761 At 31 December 2019 - 1,323,761 - 1,323,761 (o) The subsidiaries of the Group that have non-controlling interests (“NCI”) are as follows: Speed Pay Plc. RM Other individual immaterial subsidiaries RM Total RM 2019 NCI percentage of ownership and voting interest 49% Carrying amount of NCI 6,306,021 106,983 6,413,004 (Loss)/Profit allocated to NCI (1,734,440) 28,990 (1,705,450) 2018 NCI percentage of ownership and voting interest Carrying amount of NCI - 169,765 169,765 Profit allocated to NCI - 40,689 40,689