annual report - Tenaga Nasional Berhad

Notes To The Financial Statements42 FINANCIAL RISK MANAGEMENT (CONT’D.)(d)Foreign exchange risk (Cont’d.)usD JPY EURO OthersR rM’million RM’million RM’million RM’millionCompany2007Financial assetsAmount due from subsidiaries 1,322.2 0 0 0.2Deposits and bank balances 14.4 0 0 0Other assets (interest receivablefrom swap counterparties) 0 0.3 0 01,336.6 0.3 0 0.2Financial liabilitiesAmount due to subsidiaries 3,108.1 885.6 0 0Borrowings 3,754.6 3,427.2 6.1 8.16,862.7 4,312.8 6.1 8.1(e)Fair valueThe fair value of a financial instrument is assumed to be the amount at which the instrument could be exchanged orsettled between knowledgeable and willing parties in an arm’s length transaction, other than in forced or liquidationsale. Quoted market prices, when available, are used as the measure of fair values. However, for a significant portionof the Group’s and the Company’s financial instruments, quoted market prices do not exist. For such financialinstruments, fair values presented are estimates derived using the net present value or other valuation techniques.The above techniques involve uncertainties and are significantly affected by the assumptions used and judgementsmade regarding risk characteristics of various financial instruments, discount rates, estimates of future cash flows,future expected loss experience and other factors. Changes in assumptions could significantly affect these estimatesand the resulting fair values.[ Tenaga Nasional Berhad ] [ Annual Report 2008 ]266The face values for financial assets and liabilities with a maturity of less than one year are assumed to approximatetheir fair values.