Notes to The
Financial Statements
Year ended 31 December 2015
24 Financial instruments (Cont’d)
With effect from 1 January 2016, the Aggregate Leverage of a property fund should not exceed 45% of the fund’s
Deposited Property without requirement of credit rating and the option for a property fund to leverage up to 60%
by obtaining a credit rating will be removed.
During the financial year, the Group maintained a credit rating of Baa2 from Moody’s. The Aggregate Leverage of
the Group as at 31 December 2015 was 35.3% (2014: 35.2%) of the Group’s Deposited Property. This complied
with the stipulated Aggregate Leverage limit.
During the year, the Group has complied with all externally imposed capital requirements.
There were no changes in the Group’s approach to capital management during the year.
Determination of fair values
The carrying amounts and fair values of financial assets and liabilities, including their levels in the fair value
hierarchy are as follows. It does not include fair value information for financial assets and liabilities not measured
at fair value if the carrying amount is a reasonable approximation of fair value.
Carrying amount
Fair value
Note
Loans and
receivables
Designated
at
fair value
#
Other
financial
liabilities
Fair value
– hedging
instruments
Total
carrying
amount Level 1 Level 2 Level 3 Total
$’000
$’000
$’000
$’000
$’000 $’000 $’000 $’000 $’000
Group
31 December 2015
Financial assets
measured at
fair value
Forward foreign
exchange contracts
–
2,641
–
–
2,641
– 2,641
– 2,641
Cross currency interest
rate swap used for
hedging
–
–
–
6
6
–
6
–
6
6
–
2,641
–
6 2,647
Financial assets not
measured at
fair value
Trade and other
receivables*
7
9,645
–
–
–
9,645
Cash and cash
equivalents
8
20,358
–
–
– 20,358
30,003
–
–
– 30,003
136
ParkwayLife REIT
Annual Report 2015
