4.3.8 Net Impairment Gains/(Losses) on Financial and Contract Assets
In the context of recovering oil and gas market and raising oil price, the Company's clients' credit ratings generally have significantly improved comparing to 2020 despite the remaining uncertainties regarding the COVID-19 pandemic. As part of the regular update of 'Impairment gains/(losses) on financial and contract assets', the Company has therefore recognized an overall net impairment gain of US$12 million (December, 2020: loss of US$(24) million).
During the year, the following gains/(losses) related to credit risks were recognized:
|
2021 |
2020 |
||
|---|---|---|---|
|
Impairment losses |
|||
|
- Movement in loss allowance for trade receivables |
0 |
(1) |
|
|
- Movement in loss allowance for construction work-in-progress |
3 |
(4) |
|
|
- Movement in loss allowance for finance lease receivables |
1 |
(1) |
|
|
- Movement in loss allowance for other assets |
2 |
(18) |
|
|
(Impairment)/impairment reversal losses on other financial assets |
7 |
- |
|
|
Net impairment gains/(losses) on financial and contract assets |
12 |
(24) |
During the year 2021, the Company recognized a partial impairment reversal of a funding loan provided to an equity accounted joint venture. The impairment reversal of US$7 million was recognized based on updated forecasted cash available at the level of the joint venture.