183
Annual Report 2015
27 FINANCIAL INSTRUMENTS (CONT’D)
Measurement of fair values (cont’d)
Valuation techniques and significant unobservable inputs (cont’d)
(ii) Other non-derivative financial liabilities
Other non-derivative financial liabilities (including loans and borrowings, trade and other payables and rental
deposits) are measured at fair value at initial recognition and for disclosure purposes, at each financial year.
The fair values of non-derivative financial liabilities with a maturity of less than one year are assumed to approximate
their carrying values because of the short period to maturity. The fair values of other non-derivative financial
liabilities are calculated based on the present value of future principal and interest cash flows, discounted at the
market rate of interest at the measurement date.
Interest rates used in determining fair values
The interest rate used to discount estimated cash flows is set out below:
2015
2014
%
%
Fixed rate TMK bond
0.66
–
Fixed rate bank loans
3.04
1.29
Fixed rate medium term notes
2.37
2.50
Rental deposits
2.33
1.74
28 COMMITMENTS
HBT Group
H-REIT Group
Stapled Group
2015
2014
2015
2014
2015
2014
$’000
$’000
$’000
$’000
$’000
$’000
(a)
Capital expenditure
contracted but not
provided for
–
–
3,337
2,803
3,337
2,803
(b)
The HBT Group, the H-REIT Group and the Stapled Group lease out their properties. Non-cancellable operating
lease rentals are receivable as follows:
HBT Group
H-REIT Group
Stapled Group
2015
2014
2015
2014
2015
2014
$’000
$’000
$’000
$’000
$’000
$’000
Within 1 year
113
106
70,698
70,515
66,697
66,651
After 1 year but
within 5 years
450
422 240,614 240,741 224,612 225,286
After 5 years
426
508 232,668 289,516 220,755 274,147
989
1,036 543,980 600,772 512,064 566,084
The above operating lease receivables are based on the fixed component of the rent receivable under the
lease agreements, adjusted for increases in rent where such increases have been provided for under the
lease agreements.
NOTES TO THE FINANCIAL STATEMENTS
