Notestothefinancialstatements
For the financial year ended31December 2015
25.
Financial riskmanagement objectivesandpolicies (cont’d)
Foreigncurrency risk (cont’d)
Sensitivity analysis for foreign currency risk
The following tabledemonstrates thesensitivityof theGroup’sprofitnet of tax toa reasonablypossiblechange in theUSDandEuroexchange ratesagainstSGD,
withall other variablesheld constant.
Group
2015
2014
$’000
$’000
Net profit
Net profit
USD / SGD – strengthened3% (2014: 3%)
+1,296
+1,766
– weakened3% (2014: 3%)
–1,296
–1,766
Euro / SGD – strengthened3% (2014: 3%)
+10
+29
– weakened3% (2014: 3%)
–10
–29
26.
Fairvalueof financial instruments
A.
Fairvalueof financial instrumentsbyclasses thatarenotcarriedat fairvalueandwhosecarryingamountsarereasonableapproximationof fairvalue
Thecarryingamountsof the trade receivables, deposits, amount due from / (to) subsidiaries, and tradeandotherpayablesare reasonableapproximation
of fair values, due to their short-termnature.
B.
Fairvalueof financial instruments that arecarriedat fairvalue
GroupandCompany
2015
2014
$’000
$’000
Non-current:
Available-for-sale financial assets
– Corporatebonds (quoted) - at fair value (Level 1)
7,437
7,699
Current:
Available-for-sale financial assets
– Corporatebonds (quoted) - at fair value (Level 1)
1,284
–
Fair valuehierarchy
TheGroup categories fair valuemeasurement usinga fair valuehierarchy that isdependent on the valuation inputsusedas follows:
– Level 1–Quotedprices (unadjusted) inactivemarket for identical assetsor liabilities that theGroup canaccessat themeasurement date,
– Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or
indirectly (i.e., derived fromprices) and
– Level 3–Unobservable inputs for theasset or liability.
Fair valuemeasurements that use inputs of different hierarchy levels are categorised in its entirety in the same level of the fair value hierarchy as the
lowest level input that is significant to theentiremeasurement.
Determinationof fair value
Quotedequity instruments
: Fair value isdetermineddirectly by reference to their publishedmarket bidpriceat balance sheet date.
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BAKERTECHNOLOGYlimited
ANNUAL REPORT 2015
