FRENCKEN GROUP LIMITED
ANNUAL REPORT 2014
124
NOTES TO FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2014
(CONT’D)
34 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D)
(e) Fair value measurements
The fair value measurement of the Group’s financial and non-financial assets and liabilities approximate their
respective fair value due to their relatively short term maturity. The fair value of other classes of financial assets
and liabilities are disclosed in the respective notes to the financial statements.
The fair value of non-current receivables is equivalent to its carrying amount.
For unquoted equity investments classified as financial asset available-for-sale, it is not practicable to determine
its fair value because of the lack of market prices and assumptions used in the valuation models to value the
investments cannot be reasonably determined. In the opinion of the management, fair value of unquoted equity
investment is measured at cost less impairment loss at the end of financial year because range of reasonable fair
value cannot be measured reliably.
The Group and the Company have no plans to dispose of this investment in the foreseeable future.
(f) Financial instruments by category
The carrying amount of the different categories of financial instruments is as disclosed on the face of the balance
sheets and in Note 34 to the financial statements:
The Group
The Company
2014
$’000
2013
$’000
2014
$’000
2013
$’000
Financial asset, available-for-sale
(Note 16)
4,372
4,907
4,372
4,907
Loans and receivables:
Trade receivables (Note 19)
87,207
83,012
-
-
Receivables from subsidiaries
(Note 20)
-
-
1,328
11,116
Dividend receivable from subsidiaries
-
-
4,295
2,947
Other receivables, deposits and
prepayments (Note 21)
11,945
10,614
12
11
Cash and cash equivalents (Note 22)
18,770
19,634
2,092
3,499
Less: Prepayments (Note 21)
(3,898)
(3,967)
(11)
(10)
Total
114,024
109,293
7,716
17,563
Trade payables (Note 23)
49,111
40,542
-
-
Other payables, accruals and
provisions (Note 24)
31,345
27,460
360
330
Borrowings (Note 26)
55,359
51,213
400
-
Financial liabilities at amortised cost
135,815
119,215
760
330
