Notes to Financial Statements

52Middle 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)iv)Liquidity risk management (cont’d)Non–derivative financial assetsWeightedaverageeffectiveinterestrateOndemandorwithin1 yearWithin2 to 5yearsAfter5 years Total% $ $ $ $Group2008Non–interest bearing – 8,404,326 – – 8,404,326Fixed interest rate instruments 1.7 7,477,909 – – 7,477,90915,882,235 – – 15,882,2352007Non–interest bearing – 9,210,238 – – 9,210,238Fixed interest rate instruments 2.6 12,223,918 – – 12,223,91821,434,156 – – 21,434,156Company2008Non–interest bearing – 3,967,004 – – 3,967,004Fixed interest rate instruments 1.7 6,730,819 – – 6,730,81910,697,823 – – 10,697,8232007Non–interest bearing – 2,542,565 – – 2,542,565Fixed interest rate instruments 2.6 11,872,014 – – 11,872,01414,414,579 – – 14,414,579v) Fair value of financial assets and financial liabilitiesThe carrying amounts of cash and cash equivalents, trade and other current receivables and payablesapproximate their respective fair values due to the relatively short–term maturity of these fi nancialinstruments. The fair values of other classes of fi nancial assets and liabilities are disclosed in therespective notes to fi nancial statements.The fair values of fi nancial assets and fi nancial liabilities are determined as follows:i) the fair value of fi nancial assets and fi nancial liabilities with standard terms and conditions andtraded on active liquid markets are determined with reference to quoted market prices; andii)the fair value of other fi nancial assets and fi nancial liabilities (excluding derivative instruments)are determined in accordance with generally accepted pricing models based on discountedcash fl ow analysis using prices from observable current market transactions and dealer quotesfor similar instruments.