X hits on this document

167 views

0 shares

0 downloads

0 comments

64 / 69

PSA International Pte Ltd Annual Report 2010

N otes to the Financial Statements

Year ended 31 December 2010

Sensitivity analysis

At 31 December 2010, it is estimated that a 10% strengthening in Singapore dollar against Hong Kong dollar and US dollar would decrease the Group’s profit before tax by approximately $1.4 million (2009: $6.4 million) and increase the Group’s profit before tax by approximately $2.4 million (2009: decrease by $10.9 million) respectively. A 10% strengthening in Singapore dollar against Hong Kong dollar and US dollar is not expected to have a significant impact on the Group’s equity as the bank loans, fixed and floating rate notes are designated as a hedge of the Group’s investment in its associated companies.

At 31 December 2010, it is estimated that a 10% strengthening in Singapore dollar against Hong Kong dollar and US dollar would decrease the Company’s profit before tax by approximately $1.4 million (2009: $6.6 million) and increase the Company’s profit before tax by approximately $124.9 million (2009: $122.3 million) respectively.

This analysis assumes that all other variables, in particular interest rates, remain constant and does not take into account the associated tax effects and share of non-controlling interest.

(iii)

Equity price risk

Equity security price risk is the risk of changes in fair value of the Group’s investments due to changes in the underlying equity securities prices. The risk is concentrated in the Group’s investments in equity securities.

Sensitivity analysis

At 31 December 2010, it is estimated that a 10% increase in the underlying equity securities prices would increase equity by $33.0 million (2009: $17.9 million). A 10% decrease in the underlying equity securities prices would have the equal but opposite effect on the Group’s equity. This analysis assumes that all other variables, in particular foreign currency rates, remain constant and does not take into account the associated tax effects and share of non- controlling interest.

Fair value hierarchy

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:

Level 1:

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

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Level 3:

Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

93

Document info
Document views167
Page views167
Page last viewedSun Dec 04 06:18:31 UTC 2016
Pages69
Paragraphs3982
Words19865

Comments