NOTES TO THE FINANCIAL STATEMENTS
For the Financial Year Ended 31 December 2014
41 DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (CONT’D)
At 31 December 2014 (cont’d):
(iii)
Forward commodity contracts
Forward commodity contracts designated as hedges tomanage its commodity price risk for fuel used for operations:
Contract
Amount
Range of Maturity Period
Average price
(USD million)
1.6
From January 2015 to January 2016
USD344 per tonne
A fair value loss of $160,000 with a deferred tax credit of $38,000 on such contracts relating to effective hedges
has been included in the hedging reserves.
At 31 December 2013:
(i)
Cash flow hedges
Forward currency contracts designated as hedges to manage its foreign currency risk on expected future sales
receivables in United States Dollar (USD):
(a)
Average Exchange
Sell USD
Range of Maturity Period
Rate
(In million)
RM/USD
47.3
From January 2014 to April 2014
3.2421
A fair value loss of $620,000 with a deferred tax credit of $155,000 on such contracts related to effective hedges had
been included in the hedging reserves. The cash flow hedges of certain contracts were assessed to be ineffective.
Accordingly, a fair value loss of $203,000 with a deferred tax credit of $51,000 in respect of these contracts was
recognised in profit or loss.
(b)
Average Exchange
Buy USD
Range of Maturity Period
Rate
(In million)
RM/USD
1.3
January 2014
3.1691
A fair value loss of $56,000 with a deferred tax credit of $14,000 on such contracts that related to effective hedges
had been included in the hedging reserves.
151
THE STRAITS TRADING COMPANY LIMITED ANNUAL REPORT 2014
