notes to the financial statements - Food Empire Holdings Limited

Food Empire Holdings Limited Annual Report 2012
NOTES TO THE FINANCIAL STATEMENTS (cont’d)
For the year ended 31 December 2012
24. Trade receivables (cont’d)
Receivables that are impaired
The Group’s trade receivables that are impaired at the balance sheet date and the movement of the allowance accounts used to
record the impairment are as follows:
Group
Individually impaired
2012 2011
US$’000 US$’000
Trade receivables – nominal amounts 363 480
Less: Allowance for impairment (363) (480)
– –
Movement in allowance accounts:
At 1 January 480 219
Charge for the year 349 286
Bad debts written off against provision (466) (25)
At 31 December 363 480
Trade receivables that are individually determined to be impaired at the balance sheet date relate to debtors that are in significant
financial difficulties and have defaulted on payments. These receivables are not secured by any collateral or credit enhancements.
For the year ended 31 December 2012, net impairment loss on trade receivables of US$349,000 (2011: US$286,000) was recognised
in the profit or loss subsequent to a debt recovery assessment performed.
25. Derivatives
Group
2012 2011
US$’000 US$’000
Convertible option 178 –
During the year, the Group entered into a 5 years loan agreement through one of its subsidiaries for an amount of US$556,000 with an
external party. There are convertible options embedded in the convertible loan entered with the external party. The loan bears interest
of 2.5% per annum and can be convertible at the option of that subsidiary (lender) into 60% equity shares at any time during the tenure
of the loan.
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