notes to the financial statements
for the financial year ended 31 December 2014 (Continued)
51 FINANCIAL RISKMANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
Liquidity risk (continued)
Within 1
year
More than
1 year and
less than 2 years
More than
2 years and
less than 5 years
Total contractual
undiscounted
cash flows
Total carrying
amount
RM'000
RM'000
RM'000
RM'000
RM'000
Company
2014
Non-derivative financial liabilities
Other payables and accruals
10,261
-
-
10,261
10,261
Amounts owing to subsidiaries
1,528
-
-
1,528
1,528
Loans and borrowings
255,712
-
-
255,712
255,712
267,501
-
-
267,501
267,501
2013
Non-derivative financial liabilities
Other payables and accruals
8,888
-
-
8,888
8,888
Amounts owing to subsidiaries
39,571
-
-
39,571
39,571
Loans and borrowings
214,195
-
-
214,195
214,195
262,654
-
-
262,654
262,654
52 FAIR VALUES OF FINANCIAL INSTRUMENTS
The carrying amounts of financial assets and liabilities classified within current assets and current liabilities respectively approximate their fair values due to the
relatively short term nature of these financial instruments.
Fair value of quoted equity instruments and debts securities are determined by reference to their respective published market bid price as at 31 December 2014.
The fair values of forward exchange contracts are estimated by discounting the difference between the contractual forward price and the current forward price for the
residual maturity of the contract using a risk-free interest rate.
The fair values of interest rate swaps and interest rate cap are determined by using valuation techniques based on observable market data.
Fair values of non-derivative financial liabilities are calculated based on the present value of future principal and interest cash flows, discounted at the market rate of
interest at the end of the reporting period. In respect of the liability component of ICULS, the market rate of interest is determined by reference to similar liabilities that
do not have a conversion option.
The carrying amount of financial liabilities measured at amortised cost approximates their respective fair values.
169
Wah Seong Corporation Berhad • Annual Report 2014
