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LIPPO MALLS INDONESIA RETAIL TRUST ANNUAL REPORT 2014
28. FINANCIAL INSTRUMENTS: INFORMATION ON FINANCIAL RISKS (CONT’D)
28G. Foreign currency risk (Cont’d)
Sensitivity analysis: (Cont’d)
Trust
2014
2013
$’000
$’000
A hypothetical 10% strengthening in the exchange rate of the functional currency
SGD against IDR with all other variables held constant would have an
adverse effect on total return before tax of
(12,653)
(12,046)
The hypothetical changes in exchange rates are not based on observable market data (unobservable inputs).
The sensitivity analysis is disclosed for each currency to which the entity has significant exposure. The analysis above
has been carried out without taking into consideration hedged transactions.
The above table shows sensitivity to a hypothetical 10% variation in the functional currency against the relevant
non-functional foreign currencies. The sensitivity rate used is the reasonably possible change in foreign exchange rates.
For similar rate weakening of the functional currency against the relevant foreign currencies above, there would be
comparable impacts in the opposite direction on the profit or loss and reserves.
In management’s opinion, the above sensitivity analysis is unrepresentative of the foreign currency risks as the historical
exposure does not reflect the exposure in future.
29. CAPITAL COMMITMENTS
Estimated amounts committed at end of reporting year for future capital expenditure but not recognised in the
financial statements are as follows:
Group
2014
2013
$’000
$’000
Commitments for purchase of plant and equipment
and assets enhancements in retail malls
3,517
1,462
In addition, the Manager has entered into non-binding memorandum of understanding (“MOU”) at Listing Date
(19 November 2007) with a third party owner, PT Pakuwon Permai for the acquisition of Supermal Pakuwon Indah
and Pakuwon Trade Center.
There has been no progress on this MOU.
Notes to the Financial Statements
(Cont’d)
31 December 2014
