Notes to Financial Statements

50Middle East Development Singapore Ltd.Annual Report 2008Notes to Financial Statements30 June 20084 FINANCIAL INSTRUMENTS, FINANCIAL ASSETS AND CAPITAL RISKS MANAGEMENT (Cont’d)(b)Financial risk management policies and objectives (cont’d)iii)Foreign currency risk management (cont’d)At the reporting date, the carrying amounts of monetary assets and monetary liabilities denominatedin currencies other than the respective Group entities’ functional currencies are as follows:GroupCompanyAssets Liabilities Assets Liabilities2008 2007 2008 2007 2008 2007 2008 2007$ $ $ $ $ $ $ $Euro – – 109,952 107,915 – – – –SwissFranc – – 23,427 123,975 – – – –UnitedArabEmiratesDirham – – 35,025 – – – 35,025 –UnitedStatesdollar 38,443 195,983 91,447 – – – – –The Company has a number of investments in foreign subsidiaries, whose net assets are exposed tocurrency translation risk.Foreign currency sensitivity10% is the sensitivity rate used when reporting foreign currency risk internally to key managementpersonnel and represents management’s assessment of the possible change in foreign exchangerates. The sensitivity analysis includes only outstanding foreign currency denominated monetary itemsand adjusts their translation at the period end for a 10% change in foreign currency rates. If therelevant foreign currencies appreciated or depreciated by 10% against the functional currency of eachGroup entity, there would have been no signifi cant impact on the fi nancial statements of the Groupand the Company for the current and previous fi nancial years.