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4. Financial Instruments, Financial Risks and Capital Assets
Management (cont’d)
(b) Financial risk management policies and objectives (cont’d)
(iv) Price risk management on available-for-sale investments
The Group is exposed to price risks arising from available-for-sale investments. Available-for-sale investments
are held for strategic rather than trading purposes.
Further details of these investments can be found in Note 12.
Investments price sensitivity
Group
If prices for available-for-sale investments increase by 10% (December 31, 2013: 10%) with all other variables
held constant, the Group’s profit or loss would increase by $Nil (December 31, 2013: $551,000) and the Group’s
fair value reserves would increase by $99,741,000 (December 31, 2013: $92,999,000).
If prices for available-for-sale investments decrease by 10% (December 31, 2013: 10%) with all other variables
held constant, the Group’s profit or loss would decrease by $1,055,000 (December 31, 2013: $954,000) and the
Group’s fair value reserves would decrease by $98,686,000 (December 31, 2013: $92,596,000).
Co-operative
If prices for available-for-sale investments increase by 10% (Decemebr 31, 2013: 10%) with all other variables
held constant, the Co-operative’s profit or loss would increased by $Nil (December 31, 2013: $551,000) and the
Co-operative’s fair value reserves would increase by $88,403,000 (December 31, 2013: $82,404,000).
If prices for available-for-sale investments decrease by 10% (December 31, 2013: 10%) with all other variables
held constant, the Co-operative’s profit or loss would decrease by $1,055,000 (December 31, 2013: $954,000)
and the Co-operative’s fair value reserves would decrease by $87,348,000 (December 31, 2013: $82,001,000).
Notes to Financial Statements
December 31, 2014
