NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
115
ANNUAL REPORT 2015
23.
DERIVATIVE FINANCIAL INSTRUMENTS (CONT’D)
(d)
the interest rate swap contracts are entered into for the purpose of managing interest rate 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.
Further details of the derivative financial instruments in items (a) to (d) are disclosed in note 41 to the financial statements.
24.
OTHER NON-CURRENT ASSETS
Group
2015
2014
$’000
$’000
Base inventory
987
1,135
Initial payment for a retail development in Chongqing (note 16)
–
74,491
987
75,626
(a)
Base inventory is used in the smelting process and comprises a metallic tin content of 381 tonnes (2014: 381
tonnes). It is stated at lower of estimated recoverable amount and cost.
(b)
In 2014, the initial payment made by the Group was related to the acquisition of a retail development in Chongqing,
China. Handover of the bare-shell retail mall was completed in September 2015 and the amount was reclassified to
investment properties.
25.
NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS
(a)
During the financial year, the Straits Trading Building at No. 2 Lebuh Pasar Besar, Kuala Lumpur has been reclassified
as held for sale upon an offer being received.
In 2014, three units of investment properties, at 6B Cable Road and two units at Gallop Green, have been reclassified
as held for sale of which the sales were completed in 2015.
Non-current assets held for sale
Group
Company
2015
2014
2015
2014
$’000
$’000
$’000
$’000
Assets:
Investment properties (note 16)
17,771
42,317
17,771
–
(b)
On 24 December 2014, the Group entered into a share transfer agreement with Baijia International Group (Hong
Kong) Limited to sell all the shares in Shanghai Straits Trading Co., Ltd. for a consideration of RMB19.27 million. The
sale was completed in February 2015.
(c)
On 1 June 2014, the Group entered into a sale and purchase agreement with Berkeley Kensington Group Limited to
dispose of its entire interest in Bemban Corporation Limited (“BCL”) group for a total consideration of USD1 million.
The sale was completed on 2 June 2014. Its 2014 results was disclosed in note 25(d).
