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/ MTQ CORPORATION LIMITED /
ANNUAL REPORT
2014/2015
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2015
(In Singapore dollars)
33. FINANCIAL INSTRUMENTS (CONT’D)
(b)
Financial instruments that are not carried at fair value and whose carrying amount approximates fair
value
Management has determined that the carrying amount of cash and cash equivalents (Note 18), trade and
other receivables (Notes 15 and 17), trade and other payables (Note 19), finance lease payable (Note 20)
and bank borrowings (Note 21) based on their notional amounts, reasonably approximate their fair values
either due to their short-term nature or that they are floating rate instruments that are re-priced to market
interest rates on or near the end of the reporting period.
(c)
Financial instruments that are not carried at fair value and whose carrying amounts are not
reasonable approximation of fair value
The fair value of non-current amounts due from/(to) subsidiaries (Notes 15 and 19) are not determinable as
the timing of the future cash flows arising from the repayment cannot be estimated reliably.
34. HEDGE ACCOUNTING
Hedge of net investments in foreign operations
Included in loans at 31 March 2015 was a borrowing of AUD30,000,000 (2014: AUD30,000,000), which has been
designated as a hedge of the net investment in the Neptune Group and is being used to hedge the Group’s
exposure to foreign exchange risk on the investment. Gains or losses on the retranslation of this borrowing are
transferred to equity to offset any gains or losses on translation of the net investments in the subsidiary. There was
no ineffectiveness in the years ended 31 March 2015 and 31 March 2014.
