Page 139 - ar2013.pdf

NOTES TO THE FINANCIAL STATEMENTS

For the Ànancial year ended 31 December 2013

137

Annual Report 2013

F i nanc i a l Statement s

34. Financial risk management

(continued)

(d)

Capital risk

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going

concern and to maintain an optimal capital structure so as to maximise shareholder value. In order to

maintain or achieve an optimal capital structure, the Group may adjust the amount of dividend payment,

return capital to shareholders, issue new shares, buy back issued shares, obtain new borrowings or sell

assets to reduce borrowings.

Management monitors capital based on the return on shareholders’ fund. The return on shareholders’ fund

was 2.3% per annum for the current financial year ended 31 December 2013 (2012: 8.2% per annum).

The return on shareholders’ fund is calculated as net profit attributable to equity holders of the Company

divided by average shareholders’ equity.

The Group and the Company are in compliance with all externally imposed capital requirements for the

financial years ended 31 December 2013 and 31 December 2012.

(e)

Fair value measurements

The following table presents assets and liabilities measured at fair value and classified by level of the following

fair value measurement hierarchy:

(i)

quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);

(ii)

inputs other than quoted prices included within Level 1 that are observable for the asset or liability,

either directly (as prices) or indirectly (derived from prices) (Level 2); and

(iii)

inputs for the asset or liability that are not based on observable market data (unobservable inputs)

(Level 3).

Level 1

Level 2

Level 3

Total

$’000

The Group

2013

Assets

Available-for-sale financial assets

- Quoted equity shares

438

–

438

- Unquoted equity shares

–

3,953

Forward currency contracts

–

770

–

770

Total assets

438

770

3,953

5,161

2012