FRENCKEN GROUP LIMITED
ANNUAL REPORT 2015
119
NOTES TO FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 (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 values 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, 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
2015
$’000
2014
$’000
2015
$’000
2014
$’000
Financial asset, available-for-sale
(Note 16)
4,132
4,372
4,132
4,372
Loans and receivables:
Trade receivables (Note 19)
87,411
87,207
-
-
Receivables from subsidiaries
(Note 20)
-
-
662
1,328
Dividend receivable from subsidiaries
-
-
4,127
4,295
Other receivables, deposits and
prepayments (Note 21)
10,134
11,945
19
12
Cash and cash equivalents (Note 22)
14,719
18,770
3,667
2,092
Less: Prepayments (Note 21)
(4,165)
(3,898)
(11)
(11)
Total
108,099
114,024
8,464
7,716
Trade payables (Note 23)
45,004
49,111
-
-
Other payables, accruals and
provisions (Note 24)
28,997
31,345
381
360
Borrowings (Note 26)
51,900
55,359
-
400
Financial liabilities at amortised cost
125,901
135,815
381
760
