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Asia Media Group Berhad
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Annual Report 2015
Notes to the Financial Statements
(continued)
pg.
117
24. Financial risk management objectives and policies (cont’d)
(c) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the Group’s and the
Company’s financial instruments will fluctuate because of changes in market interest
rates. The Group’s exposure to interest rate risk is minimised, as the Group do not have
any significant loans and borrowings, other than finance lease obligations, term loan and
bank borrowings which bear interest at fixed rates.
The investment in financial assets are mainly short term in nature and they are not held
for speculative purposes but have been mostly placed in fixed deposits which yield better
returns than cash at bank. As such, no sensitivity analysis of interest risk has been disclosed
in the financial statements.
(d) Market price risk
Market price risk is the risk that the fair value or future cash flows of the Group’s or the
Company’s financial instruments will fluctuate because of changes in market prices (other
than interest or exchange rates).
The Group and the Company are not exposed to market price risk as they do not have
any investment in quoted equity instruments.
25. Fair value of financial instruments
Determination of fair value
Financial instruments that are not carried at fair value and whose carrying amounts are reasonable
approximation of fair value
The following are classes of financial instruments that are not carried at fair value and whose
carrying amounts are reasonable approximation of fair value:
Note
Trade and other receivables (other than prepayments)
10
Short term borrowings
15
Trade and other payables
14