negative operating cash flows and is in net tangible liabilities position; or - a dormant entity or has a history of default. At the end of the financial year, there was no indication that the amounts due from the subsidiaries are not recoverable other than those which have already been impaired. The Company does not specifically monitor the ageing of advances to the subsidiaries. During the financial year, there has been reversal of loss allowances due to repayments received from subsidiaries. NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 FINANCIAL STATEMENTS Sec 5 319 45 FINANCIAL INSTRUMENTS (CONTINUED) (b) Financial risk management (continued) Credit risk (continued) (iii) Non-trade receivables (continued) • Intercompany balances (continued) Impairment losses (continued) The loss allowances for intercompany balances using the general 3-stage approach reconciledto the opening loss allowances for that provision are as follows: Stage 1 RM’million Stage 2 RM’million Stage 3 RM’million Total RM’million 2023 As at the beginning of the financial year (327.9) (129.8) (116.2) (573.9) Impairment loss recognised (53.0) (90.3) (20.4) (163.7) Impairment loss reversed 150.1 11.8 1.1 163.0 Impairment written off 0 0 1.4 1.4 As at the end of the financial year (230.8) (208.3) (134.1) (573.2) 2022 As at the beginning of the financial year (471.9) (128.2) (118.5) (718.6) Impairment loss recognised (54.9) (1.6) (9.6) (66.1) Impairment loss reversed 198.9 0 11.9 210.8 As at the end of the financial year (327.9) (129.8) (116.2) (573.9) The impact on the carrying value of the intercompany balances presented by the stages are as follows: Stage 1 RM’million Stage 2 RM’million Stage 3 RM’million Total RM’million 2023 Gross carrying amount 8,203.1 213.6 134.1 8,550.8 Less: Loss allowances (230.8) (208.3) (134.1) (573.2) Net carrying amount 7,972.3 5.3 0 7,977.6 2022 Gross carrying amount 10,340.8 133.8 116.2 10,590.8 Less: Loss allowances (327.9) (129.8) (116.2) (573.9) Net carrying amount 10,012.9 4.0 0 10,016.9 NOTES TO THE