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SUSTAINABILITY EFFECTIVE CORPORATE FINANCIAL ADDITIONAL DETAILS OF THE ANNUAL
REPORT LEADERSHIP GOVERNANCE STATEMENTS INFORMATION GENERAL MEETING

NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

21 LOANS DUE FROM SUBSIDIARIES (CONTINUED)

(d) Reconciliation of loss allowance
Loan due from subsidiaries using general 3 stage approach
The loss allowance for loan due from subsidiaries as at 31 December 2020 reconciles to the opening loss allowance for
that provision as follows:
Under- Non-
Performing performing performing Total
RM’000 RM’000 RM’000 RM’000

Opening loss allowance as at 199
1 January 2019 (calculated under MFRS 9) - (32,709) - (32,709)

Individual financial assets transferred to
non-performing (credit-impaired financial assets)
(Note 8) - (50) - (50)
Reversal of loss allowance (Notes 1a, 8) - 32,340 - 32,340
Closing loss allowance as at 31 December 2019 - (419) - (419)

Reversal of loss allowance (Notes 1b, 8) - 419 - 419
Closing loss allowance as at 31 December 2020 - - - - MSM MALAYSIA HOLDINGS BERHAD Annual Report 2020

Note 1a:
The reversal of loss allowance in the previous financial year of RM32,340,000 was recorded after considering the
repayment plan agreed by the Company with the subsidiary and recent repayments that have been received from the
Company’s subsidiary.
Note 1b:
The reversal of loss allowance of RM419,000 is recorded after repayment made during the year.