Page 130 - Report_to_Unitholders_2012

Notes to the Financial Statements
26. Capital and financial risk management (Cont'd)
Financial risk management (Cont'd)
Sensitivity analysis
A 10% strengthening of Singapore dollar against the US dollar and RMB at the reporting date would increase/
(decrease) total return after tax by the amounts shown below. This analysis assumes that all other variables, in
particular interest rates, remain constant. The analysis is performed on the same basis for 2011.
Statements of total return
Group Trust
$’000 $’000
2012
US dollars (24) (46,436)
RMB (1,531) (1,529)
2011
US dollars (376) (50,150)
A 10%weakening of Singapore dollar against the US dollar and RMB would have had the equal but opposite effect
on the US dollar and RMB to the amounts shown above, on the basis that all other variables remain constant.
Hedge of net investment in foreign operation
The non-deliverable forwards (“NDF”) of $305.0 million (2011: $263.0 million) are designated as hedges of the
Group’s net investment in certain subsidiaries in China.
The net change in fair value of the net investment hedge comprised the effective portion of $11.8 million (2011:
$5.4 million) which was recognised in the foreign currency translation reserve.
Sensitivity analysis
For NDF (accounted for as net investment hedges), a change of 10% in foreign exchange rate at the reporting
date would increase/(decrease) Unitholders’ funds as at 31 December 2012 by the amounts shown below. This
analysis assumes that all other variables, in particular interest rates, remain constant. The analysis is performed
on the same basis for 2011.
Unitholders’ funds
10% 10%
increase decrease
$’million $’million
Group
2012
Non-deliverable forwards 21.8 (26.6)
2011
Non-deliverable forwards 18.8 (23.0)
Strengthening Fundamentals, Building a Sustainable Future 128