Annual Report 2019

162 CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED Notes to the Consolidated Financial Statements For the year ended 31 December 2019 3. FINANCIAL RISK MANAGEMENT (CONTINUED) 3.1 Financial risk factors (continued) (ii) Credit risk and impairment assessment (continued) The following table shows reconciliation of loss allowances that has been recognised for other debtors. Lifetime ECL (credit- impaired) HK$’million As at 1 January 2018 30 Impairment losses recognised 12 Impairment losses reversed (1) Exchange adjustments (2) As at 31 December 2018 39 Exchange adjustments (1) As at 31 December 2019 38 The Group makes full provision for other debtors when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, or when the other debtors are over three years past due, whichever occurs earlier. For financial guarantee contracts, the maximum amount that the Group has guaranteed under the respective contracts was HK$314 million as at 31 December 2019 (2018: HK$500 million). As at 31 December 2019 and 2018, the directors of the Company have performed impairment assessment, and concluded that the loss allowance for financial guarantee contracts, if any, should not be material to these consolidated financial statements.