Wah Seong Corporation Berhad Annual Report 2018

20 AMOUNTS OWING BY/(TO) ASSOCIATES (a) Amounts owing by associates Group Company 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 Trade accounts 7,396 6,601 - - Advances 4,221 6,121 20 13 11,617 12,722 20 13 The movements in the allowance for impairment loss of amounts owing by associates during the financial year are as follows: Group 2018 2017 RM’000 RM’000 At 1 January - 1,441 Written off - (534) Disposal of an associate - (885) Effect of exchange rate changes - (22) At 31 December - - There is no impairment of amounts owing by associates as the rate of default and expected loss rate is low. The Group has no significant exposure to foreign currency risk for the amounts owing by associates except for an amount of RM45,000 (2017: RM44,000) 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 amounts owing by associates is non-trade in nature, unsecured, interest free and recoverable on demand. As at 31 December 2018 and 31 December 2017, the Company has no exposure to foreign currency risk for the amounts owing by associates. (b) Amounts owing to associates Group 2018 2017 RM’000 RM’000 Trade account - 165 Non-trade account - 10 - 175 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 2018 2017 RM’000 RM’000 - Canadian Dollar - 165 - United States Dollar - 10 - 175 Trade and non-trade accounts are unsecured, interest free and repayable on demand. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 WAH SEONG CORPORATION BERHAD 148