Dagang NeXchange Berhad Annual Report 2018

30. FINANCIAL INSTRUMENTS (CONTINUED) 30.4 Credit risk (continued) Inter-company balances (continued) Recognition and measurement of impairment loss (continued) The movement in the allowance for impairment is respect of subsidiaries’ loans and advances during the year are as follows: 2018 Lifetime ECL RM’000 Company Balance at 1 January as per MFRS 139 10,876 Adjustment on initial application of MFRS 9 6,667 Balance at 1 January as per MFRS 9 17,543 Reversal of impairment losses (10,876) Net remeasurement of loss allowance - Balance at 31 December 6,667 Comparative information under MFRS 139, Financial Instruments: Recognition and Measurement The movements in the allowance for impairment losses of inter-company loans and advances during the financial year were: 2017 RM’000 Company At 1 January/31 December 10,876 30.5 Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s exposure to liquidity risk arises principally from its various payables, loans and borrowings. The Group maintains a level of cash and cash equivalents and bank facilities deemed adequate by the management to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they fall due. 168 Dagang NeXchange Berhad Annual Report 2018 Notes to the Financial Statements (CONTINUED)