157
ANNUAL REPORT 2014
27 FINANCIAL RISK MANAGEMENT (CONT’D)
Foreign currency risk (cont’d)
A 10% weakening of the Singapore dollar against the above currencies at the reporting date would have had the
equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables
remain constant.
The H-REIT Group's investments in its Australian, Maldives and Japan subsidiaries are hedged by AUD, USD and
Yen denominated bank loan carrying amount $351,090,000 (2013: $275,507,000), which mitigates the currency risk
arising from the subsidiaries' net assets. The fair value of the borrowing at 31 December 2014 was $349,663,000
(2013: $274,191,000). The loans are designated as net investment hedge. No ineffectiveness was recognised from
the net investment hedge. The H-REIT Group's investments in other subsidiaries are not hedged.
Fair values
Accounting classifications and fair values
The fair values of financial assets and liabilities, together with the carrying amounts shown in the statement of
financial position, are as follows:
Fair value – Other
Loans and hedging financial
Note receivables instruments liabilities
Total
Fair value
$’000
$’000
$’000 $’000
$’000
HBT Group
2014
Trade and other receivables^
9
3,323
–
–
3,323
3,323*
Cash and cash equivalents
10
4,066
–
–
4,066
4,066*
Trade and other payables
15
–
–
(8,647)
(8,647)
(8,647)*
7,389
–
(8,647)
(1,258)
(1,258)
2013
Cash and cash equivalents
10
605
–
–
605
605*
Trade and other payables
15
–
–
(257)
(257)
(257)*
605
–
(257)
348
348
^ Excluding prepayments
* Carrying amount is a reasonable approximation of fair value
NOTES TO THE FINANCIAL STATEMENTS
