X hits on this document

345 views

0 shares

0 downloads

0 comments

125 / 136

30 September 2014 Payables Purchases awaiting settlement

2,634,272

1,424,608

30 September 2013 Payables Purchases awaiting settlement

3,600,651 3,865,831

1,025,320

Aberdeen Singapore

Aberdeen Thailand

Equity Fund

Equity Fund

The sub‑funds are exposed to counterparty credit risk on trading derivative products, cash and bank balances and other receivables balances.

(d) Credit risk

Credit risk is the risk that a counterparty will fail to perform contractual obligations, either in whole or in part, under a contract.

  • Notes to the financial statements for the year ended 30 September 2014

Less than 3 months S$

Less than 3 months S$

3 months

More than

1 year

S$

3 months

More than

1 year

S$

to 1 ye

S$

ar

to 1 ye

S$

ar

All transactions in listed securities are settled/paid upon delivery using approved brokers. The risk of default is considered minimal as delivery of securities is only made once the broker has received payment. Payment is made on a purchase once the securities have been received by the broker. The trade will fail if either party fails to meet its obligations.

The sub‑funds may also enter into derivatives to manage their exposures to currency risk and price risk, including foreign exchange forward contracts and options. Hence, the sub‑funds are also exposed to the risk that their derivatives held with counterparties may not be recoverable in the event of any default by the parties concerned. The Manager minimises the sub‑funds’ credit risk by undertaking transactions with counterparties with good credit ratings assigned by international credit rating agencies.

(e) Capital management

The sub‑funds’ capital are represented by the net assets attributable to unitholders. The sub‑funds strive to invest the subscriptions of redeemable participating units in investments that meet the sub‑funds’ investment objectives while maintaining sufficient liquidity to meet unitholders’ redemptions.

(f) Fair value estimation

At 30 September 2014 and 2013, the assets and liabilities are either measured at fair value or the fair values of assets and liabilities approximate their carrying values of the Statements of Financial Position.

The fair value of financial assets and liabilities traded in active markets (such as publicly traded derivatives and trading securities) are based on quoted market prices at the close of trading on the reporting date. The quoted market price used for financial assets held by the sub‑funds is the current bid price; the appropriate quoted market price for financial liabilities is the current asking price. When the sub‑funds hold derivatives with offsetting market risks, they use mid‑market prices as a basis for establishing fair values for the offsetting risk positions and apply this bid or asking price to the net open position, as appropriate.

The sub‑funds classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:

  • Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).

  • Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly

(that is, as prices) or indirectly (that is, derived from prices) (Level 2).

  • Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).

123

Document info
Document views345
Page views345
Page last viewedWed Dec 07 00:09:14 UTC 2016
Pages136
Paragraphs8751
Words36567

Comments