Asia-Pacific Strategic Investments Limited - Annual Report 2021

Notes to the Financial Statements For the financial year ended 30 June 2021

18

Investments in subsidiary corporations

Company

2021

2020

S$’000

S$’000

Equity investments at cost Beginning of financial year

24,400

24,400

Additional investment in registered and issued share capital of a subsidiary corporation in PRC

2,080

-

26,480

End of financial year

24,400

Less: Allowance for impairment Beginning of financial year

(905)

-

-

Impairment recognised in profit and loss during the year

(905) (905)

(905)

End of financial year

25,575

23,495

The impairment test assessment was carried out by management as at 30 June 2020 for a subsidiary corporation in PRC. The recoverable amount was determined based on value-in-use which has indicated that the recoverable amount for the investment is lower than its carrying amount. Accordingly, impairment for the cost of investment of S$905,000 was provided.

As at 30 June 2021, no additional impairment was provided as the recoverable amount which was determined by management based on value-in-use was not expected to be lower than its carrying amount.

ANNUAL REPORT 2021

87