Page 140 - ar2013

CapitaRetail China Annual Report 2013 138 Clarity
Notes to the
Financial Statements
Year ended 31 December 2013
26 CAPITAL AND FINANCIAL RISK MANAGEMENT (continued)
Financial risk management (continued)
Foreign currency risk (continued)
Sensitivity analysis (continued)
Statements of total return
Group Trust
$’000 $’000
2013
US dollars (17) (47,517)
RMB (9) (7)
2012
US dollars (24) (46,436)
RMB (1,531) (1,530)
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 $288.0 million (2012: $305.0 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 $21.6 million
(2012: $11.8 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 2013 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 2012.
Unitholders’ funds
10% 10%
increase decrease
$’million $’million
Group
2013
Non-deliverable forwards 21.9 (26.8)
2012
Non-deliverable forwards 21.8 (26.6)