NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
114
THE STRAITS TRADING COMPANY LIMITED
22.
INVESTMENT SECURITIES/MARKETABLE SECURITIES (CONT’D)
(b)
Marketable Securities
Group
2015
2014
$’000
$’000
Marketable Securities:
Held-for-trading
– quoted, at fair value
178,282
78,699
Certain marketable securities are pledged to secure bank facilities (note 32).
23.
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative financial instruments included in the balance sheet as at 31 December are as follows:
Group
Assets Liabilities
Assets Liabilities
2015
2015
2014
2014
$’000
$’000
$’000
$’000
Forward currency contracts
1
1,807
–
2,142
Forward commodity contracts
–
1,514
–
160
Contract for differences
199
413
–
–
Interest rate swap contracts
–
24
–
21
200
3,758
–
2,323
Current
200
3,734
–
2,142
Non-current
–
24
–
181
These represent the fair values of the following financial instruments:
(a)
forward currency contracts are entered into for the purpose of managing foreign exchange risk. For the resources
business, the fair value changes of these contracts are recognised in other comprehensive income and accumulated
in equity under hedging reserve to the extent that the hedges are effective. Gain and losses on the forward currency
contracts entered into by the fund subsidiary is recognised in profit or loss. These contracts mature between
January to December 2016.
(b)
forward commodity contracts are entered into for the purpose of managing commodity price risk. The fair value
changes of these contracts are recognised in other comprehensive income and accumulated in equity under
hedging reserve to the extent that the hedges are effective.
(c)
contract for differences (“CFDs”) represent agreements that obligate two parties to exchange cash flows at specified
intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an
underlying asset or otherwise deemed notional amount. The payment flows are usually netted against each other,
with the difference being paid by one party to the other. Therefore amounts required for the future satisfaction of the
CFDs may be greater or less than the amount recorded. The ultimate gain or loss depends upon the prices at which the
underlying financial instruments of the CFDs is valued at the CFDs’ settlement date and is recognised in profit or loss.
