Annual Report 2011 年 報 - Neo-Neon LED Lighting International Ltd

NotES to tHE CoNSoLIDAtED
fINANCIAL StAtEMENtS
6. FINANCIAL INSTRUMENTS (Continued)
b. Financial risk management objectives and policies (Continued)
Market risk (Continued)
(i)
Currency risk (Continued)
Sensitivity analysis
The Group is mainly exposed to currency of HK$, RMB and US$.
The following table details the Group’s sensitivity to a 5% increase and decrease in HK$,
RMB and US$ against the relevant functional currencies of the group entities. 5% represents
management’s assessment of the reasonably possible change in foreign exchange rates. The
sensitivity analysis includes only outstanding foreign currency denominated monetary items
and adjusts their translation at the period end for a 5% change in foreign currency rates. The
sensitivity analysis includes receivables, payables and external loans where the denomination is
in a currency other than the functional currency of the relevant group entity. A negative number
below indicates a decrease in profit for the period where RMB and US$ strengthen 5% against
the functional currency of the respective group entities. For a 5% weakening of RMB and US$
against the functional currency of the respective group entities, there would be an equal and
opposite impact on the profit for the period. For HK$ impact, a positive number indicates a
profit for the period where HK$ weaken 5% against the functional currency of the respective
group entities. For a 5% weakening of HK$ against the functional currency of the respective
group entities, there would be an equal and opposite impact on the profit for the period and the
balances below would be negative.
HK$ impact
RMB impact
US$ impact
1.1.2010 1.1.2009 1.1.2010 1.1.2009 1.1.2010 1.1.2009
to
to to to to to
31.3.2011 31.12.2009 31.3.2011 31.12.2009 31.3.2011 31.12.2009
HK$’000
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
Decrease (44,411) (8,092) (i) (5,262) (255) (ii) (15,315) (32,885) (iii)
(i)
(ii)
(iii)
This is mainly attributable to the exposure outstanding on HK$ receivables, payables and external
loans at period end in the Group relative to RMB.
This is mainly attributable to the exposure outstanding on RMB receivables and payables at period
end in the Group relative to HK$ and US$.
This is mainly attributable to the exposure to outstanding US$ receivables and payables at the
period end in the Group relative to RMB.
In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign
exchange risk as the period end exposure does not reflect the exposure during the period. The
financial impact on exchange difference from A$, Euro and NT$ is immaterial and therefore no
sensitivity analysis has been prepared.
ANNUAL REPORT 2011 67