NOTES TO THE FINANCIAL STATEMENTS
(CONT’D)
31 DECEMBER 2015
28.
FINANCIAL INSTRUMENTS: INFORMATION ON FINANCIAL RISKS (CONT’D)
28E.
Liquidity risk – financial liabilities maturity analysis (cont’d)
The following table analyses the derivative financial instruments by remaining contractual maturity:
Less than
1 year
1 to 3
years
Total
$’000
$’000
$’000
Derivative financial instruments:
2015:
Group and Trust
Net settled:
Currency option contracts
–
472
472
Interest rate swaps
–
(1,691)
(1,691)
At end of the year
–
(1,219)
(1,219)
Less than
1 year
1 to 3
years
Total
$’000
$’000
$’000
Derivative financial instruments:
2014:
Group and Trust
Net settled:
Currency option contracts
30
–
30
At end of the year
30
–
30
The above amounts disclosed in the maturity analysis are the contractual undiscounted cash flows and such
undiscounted cash flows differ from the amount included in the statement of financial position. When the
counterparty has a choice of when an amount is paid, the liability is included on the basis of the earliest date on
which it can be required to pay.
The liquidity risk refers to the difficulty in meeting obligations associated with financial liabilities that are settled
by delivering cash or another financial asset. It is expected that all the liabilities will be settled at their contractual
maturity. The average credit period taken to settle trade payables is about 30 (2014: 30) days. The other payables
are with short-term durations. The classification of the financial assets is shown in the statements of financial
position as they may be available to meet liquidity need and no further analysis is deemed necessary.
A schedule showing the maturity of financial liabilities and unused bank facilities is provided regularly to
management of the Manager to assist in monitoring the liquidity risk. The Manager also monitors and observes
the Code on Collective Investment Schemes issued by the Monetary Authority of Singapore concerning limits
on total borrowings. The Manager is of the view that cash from operating activities will be sufficient to meet the
current requirements to support ongoing operations, capital expenditures, and debt repayment obligations.
The Trust’s structure necessitates raising funds through debt financing and the capital markets to fund strategic
acquisitions and capital expenditures. The Manager also ensures that there are sufficient funds for declared and
payable distributions and any other commitments.
LIPPO MALLS INDONESIA RETAIL TRUST
128
