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)
Sensitivity analysis (cont’d):
Trust
2015
2014
$’000
$’000
A hypothetical 10% (2014: 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
(13,423)
(12,653)
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.
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
2015
2014
$’000
$’000
Commitments for purchase of plant and equipment and assets enhancements
in retail malls
4,407
3,517
LIPPO MALLS INDONESIA RETAIL TRUST
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