NOTES TO THE FINANCIAL STATEMENTS
For the Financial Year Ended 31 December 2014
40 FINANCIAL RISK MANAGEMENT (CONT’D)
(a)
Foreign exchange risk (cont’d)
Sensitivity analysis for foreign currency risk
The following table demonstrates the sensitivity of the Group’s profit after tax and equity to a reasonably possible
change in the exchange rates of the United States Dollar, Australian Dollar, Singapore Dollar and Japanese Yen
against the functional currencies of the respective Group entities, with all other variables held constant.
Group
2014
2013
Profit after
Profit after
tax
Equity
tax
Equity
$’000
$’000
$’000
$’000
United States Dollar strengthened 5% (2013: 5%)
(4,024)
(2,591)
(4,459)
(2,350)
weakened 5% (2013 5%)
839
2,591
3,445
2,306
Australian Dollar
strengthened 5% (2013: 5%)
57
–
218
–
weakened 5% (2013: 5%)
(57)
–
(218)
–
Singapore Dollar
strengthened 5% (2013: 5%)
289
(837)
2,406
(837)
weakened 5% (2013: 5%)
(289)
837
(2,406)
837
Japanese Yen
strengthened 5%
243
–
–
–
weakened 5%
(243)
–
–
–
At the end of the reporting period, approximately:
(i)
37% (2013: 23%) of the Group’s trade and other receivables as well as 23% (2013: 32%) of the Group’s trade
and other payables are denominated in foreign currencies other than the functional currencies of the
respective Group entities, mainly in United States Dollar and Japanese Yen.
(ii)
4% (2013: 29%) of the Group’s cash and cash equivalents are denominated in foreign currencies other than
the functional currencies of the respective Group entities, mainly in Singapore Dollar, United States Dollar
and Australian Dollar.
(iii)
6% (2013: 13%) of the Group’s borrowings are denominated in foreign currencies other than the functional
currencies of the respective Group entities, mainly in United States Dollar and Japanese Yen.
143
THE STRAITS TRADING COMPANY LIMITED ANNUAL REPORT 2014
