Wah Seong Corporation Berhad Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 FINANCIAL STATEMENTS WAH SEONG CORPORATION BERHAD ANNUAL REPORT 2017 156 19 AMOUNTS OWING BY/(TO) ASSOCIATES (CONTINUED) (a) Amounts owing by associates (continued) The movements in the allowance for impairment loss of amounts owing by associates during the financial year are as follows: Group 2017 RM'000 2016 RM'000 At 1 January Impairment loss recognised 1,441 534 Written off - 885 Disposal of an associate (534) - Effect of exchange rate changes (885) - At 31 December (22) 22 - 1,441 The Group has no significant exposure to foreign currency risk for the amounts owing by associates except for an amount of RM44,000 (2016: RM2,020,000) denominated in United States Dollar. Trade accounts are unsecured, interest free and recoverable within the normal credit period. The advances are unsecured, interest free and recoverable on demand. The Company’s amount owing by associates is non-trade in nature, unsecured, interest free and recoverable on demand. As at 31 December 2017 and 31 December 2016, the Company has no exposure to foreign currency risk for the amounts owing by associates. (b) Amounts owing to associates Group 2017 RM'000 2016 RM'000 Trade account 165 - Non-trade account 10 181 175 181 The Group’s amounts owing to associates exposure to foreign currency (a currency which is other than the functional currency of the Group entities) risk, based on carrying amounts as at the end of the financial year, were: Group 2017 RM'000 2016 RM'000 - Canadian Dollar 165 - - United States Dollar 10 181 175 181 Trade and non-trade accounts are unsecured, interest free and repayable on demand.