27. 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)
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 $258.0 million (2013: $288.0 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 $7.0
million (2013: $21.6 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 2014 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 2013.
Unitholders’ funds
10% increase 10% decrease
$’million
$’million
Group
2014
Non-deliverable forwards
20.1
(24.6)
2013
Non-deliverable forwards
21.9
(26.8)
Notes to the Financial Statements
140 | CapitaRetail China Trust Annual Report 2014
