124 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2021 CONT’D 16. INVESTMENTS IN SUBSIDIARIES (Cont’d) (j) The reconciliation of movement in the impairment loss are as follows: Company 2021 2020 RM RM Balance as at 1 January 17,103,563 17,080,108 Charge for the financial year 1,130,536 23,455 Reclassification from amount owing by subsidiary 9,333,079 - Balance as at 31 December 27,567,178 17,103,563 (k) In the previous financial year, impairment for advances to subsidiaries were recognised based on the general approach within MFRS 9 using the forward-looking expected credit loss model as disclosed in Note 20 to the financial statements. During the current financial year, there is a change in contractual term of advances to subsidiaries to long term capital and impairment for advances to subsidiaries is recognised based on MFRS 136. Movements in the impairment allowance for advances to subsidiaries are as follows: 2020 12-month ECL Lifetime ECL - not credit impaired Lifetime ECL - credit impaired Total Company RM RM RM RM Balance as at 1 January 2020 - 1,323,761 - 1,323,761 Charge for the financial year - 20,021 - 20,021 Balance as at 31 December 2020 - 1,343,782 - 1,343,782 (l) The Group does not have any subsidiary that has non-controlling interests, which is individually material to the Group for both financial years ended 31 December 2021 and 31 December 2020. 17. INVESTMENTS IN JOINT VENTURES AND AN ASSOCIATE Group 2021 2020 RM RM Joint ventures Unquoted equity shares, at cost 1,581,442 1,581,442 Share of post-acquisition reserves (1,145,648) (1,145,648) Foreign exchange reserve (46,900) (46,900) Accumulated impairment losses (388,894) (388,894) - -
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