TAN CHONG MOTOR HOLDINGS BERHAD
Annual Report 2014
121
NOTES TO THE FINANCIAL STATEMENTS
33. Financial instruments (continued)
33.6 Market risk (continued)
33.6.2 Interest rate risk (continued)
(a) Fair value sensitivity analysis for fixed rate instruments
The Group and the Company do not account for any fixed rate financial assets and liabilities at
fair value through profit or loss, and the Group and the Company do not designate derivatives as
hedging instruments under a fair value hedge accounting model. Therefore, a change in interest rates
at the end of the reporting period would not affect profit and loss.
(b) Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points (bp) interest rate at the end of the reporting period would have increased/
(decreased) equity and post-tax profit or loss by the amounts shown below. This analysis assumes
that all other variables, in particular foreign currency rates, remained constant.
Profit or loss
Profit or loss
100 bp
increase
100 bp
decrease
100 bp
increase
100 bp
decrease
2014
2014
2013
2013
RM’000
RM’000
RM’000
RM’000
Group
Floating rate instruments
(3,915)
3,915
(7,896)
7,896
Company
Floating rate instruments
4,996
(4,996)
(1,258)
1,258
33.7 Hedging activities
Cash flow hedge
The Group has entered into forward foreign currency exchange contracts to hedge the cash flow risk in relation to
the foreign currency exposure, which are designated as cash flow hedges.
At the end of the reporting period, the aggregate amount of gain/(loss) under forward foreign currency exchange
contracts deferred in the cash flow hedging reserve is:
2014
2013
RM’000
RM’000
Hedging reserve
-
36
33.8 Fair value information
The carrying amounts of cash and cash equivalents, short term receivables and payables and short term borrowings
reasonably approximate their fair values due to the relatively short term nature of these financial instruments.
It was not practicable to estimate the fair value of the Group’s investment in unquoted shares due to the lack of
comparable quoted prices in an active market and the fair value cannot be reliably measured.
