14. INVESTMENTS IN ASSOCIATES (CONTINUED) Movements in the allowance for impairment loss and loss allowance are as follows: Group 2024 2023 2022 $’000 $’000 $’000 (Restated) (Restated) Balance at beginning of financial year 42,080 33,548 33,548 Reclassification to non-current assets held for sale (Note 22) (14,795) – – (Reversal)/Provision of loss allowance (27,285) 8,532 – Loss allowance 4,000 – – Balance at end of financial year 4,000 42,080 33,548 Previously, the financial performance of Pristine Islands Investment Pte. Ltd. and its subsidiary (“PIIPL Group”) has yet to reach the performance level expected by the Group. The resort is showing signs of recovery but requires additional time to stabilise and restore business activity to pre-pandemic levels. The Group thus carried out a review on the recoverable amount of its investments in PIIPL Group as at 30 September 2024 and 30 September 2023. The assessment resulted in the reversal of an impairment loss of $27,285,000 (2023: allowance for impairment loss of $8,532,000). The reversal was made following a change in the basis of determining the recoverable amount, from the Value-in-Use (“VIU”) method to Fair Value Less Costs of Disposal (“FVLCD”), reflecting improved market conditions and higher asset valuations. The reversal of the impairment loss has been recognised in the statement of profit or loss and other comprehensive income. The fair value measurement is catagorised with Level 3 of the fair value hierarchy. Key assumptions used for VIU calculations for investments in PIIPL Group are as follows: 2024 2023 % % Average revenue growth rate 8.0 5.4 Terminal growth rate 2.0 2.0 Discount rate (Pre-tax) 19.4 17.9 Key assumptions used for FVLCD calculations for investments in PIIPL Group include: • The +/- 5% adjustment applied is the independent valuer’s practice to provide a range of values, with the mid-point of the range remaining unaffected. The adjustment reflects the variability in market conditions and transaction values. • The marketability discount of 25% is based on reference made to historical empirical studies including inter alia, to Maher Study, Trout Study, Standard Research Consultant, Management Planning, Inc. Study and Columbia Financial Study. 97 ANNUAL REPORT 2024 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2024
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