CapitaLand Integrated Commercial Trust - Annual Report 2021

Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2021 6 SUBSIDIARIES Trust 2021 2020 $’000 $’000 Unquoted equity investments, at cost 6,946,711 7,218,201 Less: Allowance for impairment loss (43,505) (43,184) 6,903,206 7,175,017 Loans to subsidiaries – Interest-bearing 2,511,627 1,774,742 – Non-interest-bearing 471,903 471,903 2,983,530 2,246,645 Less: Allowance for impairment loss (8,957) (10,720) 2,974,573 2,235,925 9,877,779 9,410,942 Loans to subsidiaries are unsecured and are not expected to be repaid in the next twelve months from the reporting date. The interest-bearing loans bear interest rates of 0.87% to 3.26% (2020: 2.14% to 3.26%) per annum. Interest rates are determined by the Trust from time to time. In 2021, allowance for impairment loss amounting to $7,345,000 was recognised in respect of the Trust’s investment in RCS Trust and a reversal of impairment loss amounting to $7,024,000 was recognised in respect of the Trust’s investments in Brilliance Mall Trust (“BMT”), Infinity Mall Trust (“IMT”) and MSO Trust, taking into consideration the fair value of the underlying properties held by RCS Trust, BMT, IMT and MSO Trust. The recoverable amount was assessed based on fair value less costs to sell estimated using the revalued net assets of RCS Trust, BMT, IMT and MSO Trust and categorised as level 3 on the fair value hierarchy. In 2020, allowance for impairment loss amounting to $43,184,000 was recognised in respect of the Trust’s investments in BMT, IMT and MSO Trust taking into consideration the fair value of the underlying properties held by BMT, IMT and MSO Trust. The recoverable amount was assessed based on fair value less costs to sell estimated using the revalued net assets of BMT, IMT and MSO Trust and categorised as level 3 on the fair value hierarchy. The movements in the allowance for impairment loss are as follows: Trust 2021 2020 $’000 $’000 At the beginning of the year 53,904 – Impairment loss recognised – Unquoted equity investments, at cost 7,345 43,184 – Loans to subsidiaries – 10,720 Reversal of impairment loss – Unquoted equity investments, at cost (7,024) – – Loans to subsidiaries (1,763) – At the end of the year 52,462 53,904 CapitaLand Integrated Commercial Trust 254