NOTES TO THE FINANCIAL STATEMENTS
For the Financial Year Ended 31 December 2014
18 ASSOCIATES AND JOINT VENTURES (CONT’D)
18.2 JOINT VENTURES
Group
2014
2013
$’000
$’000
Unquoted shares, at cost
18,714
18,714
Share of post-acquisition reserves
10,674
26,498
Exchange adjustment
(8,895)
(11,874)
20,493
33,338
Impairment loss
(1,923)
(294)
18,570
33,044
(a)
Details of joint ventures are included in note 47.
(b)
Impairment assessment
During the financial year, the Group carried out a review of the recoverable amount of its investment in KM Resources,
Inc.. An impairment of $1,629,000 (2013: reversal of impairment loss of $2,341,000) was recognised in profit or
loss of the Group. The recoverable amount was based on management estimates of fair value less costs to sell.
(c)
Movements in the allowance accounts:
Group
2014
2013
$’000
$’000
At 1 January
(294)
(2,635)
(Impairment)/Reversal for the year (note 8)
(1,629)
2,341
At 31 December
(1,923)
(294)
(d)
The Group has not recognised losses relating to Africa Smelting Corporation Sprl (“ASC”) where its share of losses
exceeds the Group’s interest in the joint venture. The Group’s unrecognised share of losses at the reporting date
are as follows:
Group
2014
2013
$’000
$’000
Share of losses:
Current year
(102)
(77)
Cumulative
(179)
(77)
The Group has no obligation in respect of these losses.
112
THE STRAITS TRADING COMPANY LIMITED ANNUAL REPORT 2014
