85
4. FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL ASSETS MANAGEMENT (cont’d)
NOTES TO FINANCIAL STATEMENTS
March 31, 2013
(iv) Equity price risk management
The Group is exposed to equity risks arising from equity investments classified as available-for-sale. Available-for-sale
equity investments are held for strategic rather than trading purposes.
Further details of these equity investments can be found in Note 13.
Equity price sensitivity
Group
If prices for equity investments increase by 10% (2012 : 10%) with all other variables held constant, there would be
no effect on the impairment loss this year (2012 : $Nil) and the Group’s fair value reserves would increase by
$88,772,000 (2012 : $66,595,000).
If prices for equity investments decrease by 10% (2012 : 10%) with all other variables held constant, the Group’s
impairment on investments would have been higher by $20,858,000 (2012 : $23,061,000) and the Group’s fair
value reserves would decrease by $67,677,000 (2012 : $43,534,000).
Co-operative
If prices for equity investments increase by 10% (2012 : 10%) with all other variables held constant, there would
be no effect on the impairment loss this year (2012 : $Nil) and the Co-operative’s fair value reserves would increase
by $78,713,000 (2012 : $58,348,000).
If prices for equity investments decrease by 10% (2012 : 10%) with all other variables held constant, the Co-operative’s
impairment on investments would have been higher by $20,827,000 (2012 : $23,501,000) and the Co-operative’s
fair value reserves would decrease by $57,886,000 (2012 : $34,847,000).
