67
ANNUAL REPORT 2014
NOTES TO
THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2014
19 Financial instruments (Continued)
Risk management framework (Continued)
(iii) Market risk (Continued)
Interest rate risk (Continued)
Sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would have (decreased)/increased
profit before tax by the amounts shown below. This analysis assumes that all other variables, in
particular foreign currency rates, remain constant. The analysis is performed on the same basis for
2013 as indicated below:
2014
2013
100 bp
increase
100 bp
decrease
100 bp
increase
100 bp
decrease
$
$
$
$
Group
Profit before tax
Variable rate instruments
(130,868)
130,868
(109,225)
109,225
Capital management
The Board’s policy is to maintain a sound capital base so as to maintain investor, creditor and market
confidence and to sustain future development of the business. Capital consists of share capital,
reserves, accumulated profits/(losses) and non-controlling interests of the Group. The Board of
Directors monitors the return on capital which the Group defines as net operating income divided
by total average shareholders’ equity excluding minority interests, as well as the level of dividends to
ordinary shareholders.
There were no changes in the Group’s approach to capital management during the year.
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requiremnts.
