102
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
28.
Financial risk management
(continued)
(d)
Capital risk (continued)
Debt to equity ratio is calculated as borrowings divided by total equity. Borrowings comprised
bank borrowings, finance lease liabilities and Series 1 Notes.
Group
Company
2014
2013
2014
2013
$’000
$’000
$’000
$’000
Borrowings
170,726
127,423
49,617
49,391
Total equity
129,544
106,596
68,662
59,641
Debt to equity ratio
1.32 times
1.20 times
0.72 times
0.83 times
The Group and the Company have complied with externally imposed capital requirements for
the financial years ended 31 December 2014 and 2013.
(e)
Fair value measurements
Following are the classification level of 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 (i.e. as prices) or indirectly (i.e. 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).
The following table presents assets measured at fair value and its fair value measurement
hierarchy:
Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1)
Group
2014
2013
$’000
$’000
Assets
Available-for-sale financial assets
172
175
The fair value of financial instruments traded in active markets (such as trading and
available-for-sale securities) is based on quoted market prices at the balance sheet date.
The quoted market price used for financial assets held by the Group is the current bid price.
These instruments are included in Level 1.
The carrying amount less impairment provision of trade receivables and payables are
assumed to approximate their fair values. The fair value of financial liabilities for disclosure
purposes is estimated based on quoted market prices or dealer quotes for similar
instruments by discounting the future contractual cash flows at the current market interest
rate that is available to the Group for similar financial instruments. The fair value of current
borrowings approximates their carrying amount.
