NOTES TO THE
FINANCIAL STATEMENTS
Year ended 31 December 2014
5
INTERESTS IN SUBSIDIARIES (CONT’D)
Place of
incorporation
Effective equity
interest held by
the Group
Name of subsidiary
Principal activities
and business 2014 2013
% %
* Parkway Life Malaysia Pte. Ltd.
Investment holding
Singapore
100
100
#
Parkway Life Malaysia Sdn. Bhd. Special purpose entity
– Investment in real estate
Malaysia
100
100
* Audited by KPMG Singapore.
** Not required to be audited under the laws of country of incorporation.
(1)
For consolidation purposes, this entity has been audited by a member firm of KPMG International.
#
Audited by BDO Malaysia.
6
FINANCIAL DERIVATIVES
Group and Trust
2014
2013
$’000
$’000
Current derivative assets
398
90
Non-current derivative assets
10,515
6,187
Total derivative assets
10,913
6,277
Current derivative liabilities
(193)
(342)
Non-current derivative liabilities
(2,436)
(1,383)
Total derivative liabilities
(2,629)
(1,725)
Total derivative assets (net)
8,284
4,552
Interest rate swaps
The Group manages its exposure to interest rate movements on its floating rate loans and borrowings by entering
into interest rate swaps. As at the reporting date, the Group has interest rate swaps (inclusive of forward starting
interest rate swap) with a total notional amount, including forward interest rate swap, of $538,641,600 (2013:
$537,755,400) to provide fixed rate funding for terms of 1 to 6 years (2013: 1 to 6 years) at a weighted average
effective interest rate of 0.32% (2013: 0.42%) per annum.
As at 31 December 2014, where the interest rate swaps are designated as the hedging instruments in qualifying
cash flow hedges, the effective portion of the changes in fair value of the interest rate swaps amounting to $0.9
million loss (2013: $0.3 million gain) was recognised in the hedging reserve. During the financial year, the changes
in fair value of interest rate swaps, where hedge accounting was discontinued or not practised, amounted to $0.1
million loss was charged to the Statement of Total Return.
119
A N N U A L R E P O R T 2 0 1 4
