Asia Media Annual Report 2017

ASIA MEDIA GROUP BERHAD Annual Report 2017 137 31. Financial Instruments (cont’d) (b) Financial risk management objectives and policies (cont’d) (iii) Market risk (cont’d) (b) Interest rate risk (cont’d) The interest rate profile of the Group’s and of the Company’s significant interest-bearing financial instruments, based on carrying amounts as at the end of the reporting period was: 2017 2016 RM RM Group Floating rate instruments Financial liability Revolving credit - 1,500,000 Cash flow sensitivity analysis for floating rate instruments A change in 1% interest rate at the end of the reporting period would have increased/(decreased) the Group’ profit before tax by RM nil (2016: RM15,000) respectively, arising mainly as a result of lower/higher interest expense on floating rate loans and borrowings. This analysis assumes that all other variables remain constant. The assumed movement in basis points for interest rate sensitivity analysis is based on the currently observable market environment. (c) Fair values of financial instruments The carrying amounts of short-term receivables and payables, cash and cash equivalents and short-term borrowings approximate their fair value due to the relatively short-term nature of these financial instruments and insignificant impact of discounting. NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2017 (cont’d)