80
4. FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL ASSETS MANAGEMENT (cont’d)
Group and Co-operative
NOTES TO FINANCIAL STATEMENTS
March 31, 2013
2013
2012
$’000
$’000
Foreign currency impact
United States dollar
1,119
1,003
Hong Kong dollar
1,433
1,010
Indonesian rupiah
207
206
Philippine peso
84
193
If the relevant foreign currency weakens by 10% against the functional currency of each Group entity, the impact
will be reversed.
This is mainly attributable to the exposure from investments denominated in foreign currencies and outstanding
receivables and payables at the end of the reporting period.
In the management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk as
the year end exposure does not reflect the exposure during the year.
(i) Foreign exchange risk management
(Cont’d)
Foreign currency sensitivity
The following table details the sensitivity to a 10% increase and decrease in the relevant foreign currencies against
the functional currency of each Group entity. 10% is the sensitivity rate used when reporting foreign currency risk
internally to key management personnel and represents management’s assessment of the reasonably possible
change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated
monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates.
If the relevant foreign currency strengthens by 10% against the functional currency of each Group entity, profit or
loss and net equity will increase (decrease) by:
