97
ANNUAL REPORT 2015/2016
Notes to Financial Statements
21
INVESTMENTS IN SUBSIDIARIES
THE COMPANY
2016
2015
$’000
$’000
Cost of investments
104,174
104,174
Less: Share capital reduction in a subsidiary
(25,000)
–
Loans forming part of net investment in subsidiaries
199,493
229,712
Financial guarantees to subsidiaries
22,129
22,129
300,796
356,015
Less: Allowance for impairment
(1,071)
(1,071)
299,725
354,944
Movements in impairment allowance
Beginning and end of financial year
1,071
1,071
The recoverable amounts of investments in subsidiaries are measured based on fair value less costs to
sell, by reference to the net assets value of the subsidiaries. The net assets of the subsidiaries comprise
mainly financial assets and liabilities, investment properties and properties held for sale. The Company
views that the carrying amounts of the financial assets and financial liabilities approximate their fair
values due to the short-term maturity of these items, while the investment properties and properties
held for sale have been adjusted to their fair values and realisable values, respectively.
Investments in subsidiaries include investments of $75,789,000 (2015: $100,790,000) which are
denominated in Australian dollars.
