12. Derivative financial instruments (cont’d)
(i)
Forward currency contracts
The Group entered into various foreign exchange forward contracts to sell and purchase
foreign currencies on its future anticipated income and expenditure respectively. As
at 30 June 2015, the terms of these contracts and the fair value adjustments on these
derivative financial instruments are as follows:
Current
notional
Fair value
Forward currency contracts Maturity dates amount
adjustments
Assets Liabilities
Group
$’000 $’000 $’000
2015
Sell
- fixed forward contracts
4 January 2016
– 5 May 2016 48,897 542
–
542
–
2014
Buy
- fixed forward contracts
2 July 2014
41
–
*
–
*
* Denotes amount less than $1,000.
The terms of the forward currency contracts have been negotiated to match the terms
of the commitments.
For cash flow hedges of the expected future sales which were assessed to be
highly effective, a net fair value gain of $542,000 (2014: $Nil) was included in the
hedging reserve.
For cash flow hedges of the expected future purchases which were assessed to
be effective, a net fair value loss of $Nil (2014: loss of $400) was included in the
hedging reserve.
NOTES TO THE FINANCIAL
STATEMENTS
For the financial year ended 30 June 2015
ASL Marine Holdings Ltd. /Annual Report 2015
127
