Straco Corporation Limited • Annual Report 2014
84
NOTES TO THE FINANCIAL STATEMENTS
25
Financial risk management (cont’d)
Sensitivity analysis
In managing its currency risks, the Group aims to reduce the impact of short-term fluctuations on the Group’s earnings. Over the longer term,
however, any prolonged adverse changes in foreign exchange rates would have an impact on the consolidated financial statements.
A 10% strengthening of the Group’s major functional currencies against the following currencies at the reporting date would increase (decrease) profit
or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant.
Group
Company
2014
2013
2014
2013
$’000
$’000
$’000
$’000
Singapore dollar
106
423
–
–
Renminbi
1,014
(2,958)
796
(2,310)
US dollar
(21)
(56)
–
–
A 10% weakening of the Group’s major functional currencies against the above currencies would have had the equal but opposite effect to the
amounts shown above, on the basis that all other variables remain constant.
Determination of fair values
Financial assets and liabilities
The notional amounts of financial assets and liabilities with a maturity of less than one year (including trade and other receivables, cash and cash
equivalents, and trade and other payables) are assumed to approximate their fair values because of the short period to maturity.
