NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
108
THE STRAITS TRADING COMPANY LIMITED
19.
ASSOCIATES AND JOINT VENTURES (CONT’D)
19.2 JOINT VENTURES
Group
2015
2014
$’000
$’000
Unquoted shares, at cost
18,714
18,714
Share of post-acquisition reserves
10,430
10,674
Exchange adjustment
(7,324)
(8,895)
21,820
20,493
Impairment loss
(2,115)
(1,923)
19,705
18,570
(a)
Details of joint ventures are included in note 46.
(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 $192,000 (2014: $1,629,000) was recognised in profit or loss of the Group. The
recoverable amount was based on management’s estimate of fair value less costs to sell.
(c)
Movements in the allowance accounts:
Group
2015
2014
$’000
$’000
At 1 January
(1,923)
(294)
Impairment for the year (note 9)
(192)
(1,629)
At 31 December
(2,115)
(1,923)
(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
2015
2014
$’000
$’000
Share of losses:
Current year
14
(102)
Cumulative
(165)
(179)
The Group has no obligation in respect of these losses.
(e)
Aggregate information about the Group’s joint ventures that are not individually material are insignificant.
