115
LIPPO MALLS INDONESIA RETAIL TRUST ANNUAL REPORT 2014
28. FINANCIAL INSTRUMENTS: INFORMATION ON FINANCIAL RISKS (CONT’D)
28G. Foreign currency risk (Cont’d)
Indonesian
Rupiah
$’000
Trust
2014:
Financial Assets:
139,152
Trade and other receivables
Financial Liabilities:
Trade and other payables
12,622
Net financial assets at end of the year
126,530
2013:
Financial Assets:
Trade and other receivables
134,855
Financial Liabilities:
Trade and other payables
14,391
Net financial assets at end of the year
120,464
There is exposure to foreign currency risk as part of its normal business. In particular, there is significant exposure
to Indonesian Rupiah currency risk due to the operations of the malls in Indonesia. In this respect, foreign currency
contracts are entered into to take into consideration of anticipated revenues in Indonesian Rupiah over operating
expenses. Notes 26B and 26C illustrate the foreign currency derivatives in place at end of the reporting year.
Sensitivity analysis:
Group
2014
2013
$’000
$’000
A hypothetical 10% strengthening in the exchange rate of the functional currency
IDR against USD with all other variables held constant would have an
adverse effect on total return before tax of
(32)
(48)
A hypothetical 10% strengthening in the exchange rate of the functional currency
IDR against SGD with all other variables held constant would have an
adverse effect on total return before tax of
(1,746)
(8,040)
Notes to the Financial Statements
(Cont’d)
31 December 2014
