GHL System Berhad Annual Report 2017

ANNUAL REPORT 2017 97 NOTES TO THE FINANCIAL STATEMENTS 31 December 2017 CONT’D 14. INVESTMENTS IN SUBSIDIARIES (cont’d) (g) During the financial year, the Group recognised share options granted under shares options scheme of RM18,962 (2016: RM400,408) in profit or loss, out of which an amount of RM307,191 in the previous financial year was in respect of employees of subsidiaries. At Company level, the amount of RM307,191 in the previous financial year was recorded as an increase in investments in subsidiaries with a corresponding credit to equity as disclosed in Note 21 to the financial statements. (h) During the financial year, the Company subscribed for additional 2,400,000 ordinary shares in GHL Payments Sdn. Bhd. (“GHLP”) for a consideration of RM2,400,000. (i) During the financial year, impairment loss on investments in subsidiaries amounting to RM2,400,000 relating to a subsidiary, GHLP, was recognised due to its poor financial performance and financial position. (j) During the financial year, GHL Asia Pacific Ltd (“GHLAP”), a wholly owned subsidiary, had subscribed for additional 600,000 preference shares in GHL (Thailand) Co Ltd (“GHLT”) for a consideration of RM7,601,360. Pursuant to that, GHLAP’s equity interest in GHLT increased from 95.45% to 97.74%. (k) In the previous financial year, reversal of impairment losses on investments in subsidiaries amounting to RM3,576,426 in respect of certain subsidiaries have been recognised due to their improving financial performance and financial position. 15. INVESTMENTS IN JOINT VENTURES Group 2017 2016 RM RM Unquoted equity shares, at cost 2,213,542 2,164,542 Share of post-acquisition reserves (1,198,827) (1,217,080) Foreign exchange reserve (46,900) (46,900) Accumulated impairment losses (786,594) (786,594) 181,221 113,968 Investments in joint ventures are stated in the separate financial statements at cost.