NOTES TO THE FINANCIAL STATEMENTS
(CONT’D)
31 DECEMBER 2015
28.
FINANCIAL INSTRUMENTS: INFORMATION ON FINANCIAL RISKS (CONT’D)
28G.
Foreign currency risk (cont’d)
Indonesian
Rupiah
$’000
Trust
2015:
Financial assets:
Trade and other receivables
146,345
Total financial assets
146,345
Financial liabilities:
Trade and other payables
12,119
Net financial assets at end of the year
134,226
2014:
Financial assets:
Trade and other receivables
139,152
Total financial assets
139,152
Financial liabilities:
Trade and other payables
12,622
Net financial assets at end of the year
126,530
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. Note 26B illustrates the foreign currency derivatives in place at end of the reporting year.
Sensitivity analysis:
Group
2015
2014
$’000
$’000
A hypothetical 10% (2014: 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
(123)
(32)
A hypothetical 10% (2014: 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
(1,182)
(1,746)
ANNUAL REPORT 2015
131
