Creative 2009 Annual Report Download - page 53

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53
CREATIVE฀TECHNOLOGY฀LTD฀AND฀ITS฀SUBSIDIARIES
(iii) Currency risk
The functional currency of the Company is predominantly the US dollar and accordingly, gains and losses resulting from
the translation of monetary assets and liabilities denominated in currencies other than the US dollar are reflected in the
determination of net (loss) profit. From time to time, the Group enters into forward exchange contracts to reduce its exposure
to foreign translation gains and losses. Forward exchange contracts are marked to market each period and the resulting
gains and losses are included in the determination of net (loss) profit. No forward exchange contracts were outstanding
as at 30 June 2009 and 30 June 2008. The monetary assets and liabilities, prepaid expenses and security deposits, prepaid
non-income taxes and current income tax liabilities of the Group are denominated in the following currencies:
฀ ฀ US$’000฀balance฀denominated฀in:฀
฀ US$฀ S$฀฀ EURO฀ GBP฀ Others฀฀ Total฀
฀ Group
฀ 2009
฀ Cash฀and฀cash฀equivalents฀ 64,392฀ 56,120฀ 70,579฀ 30,212฀ 29,248฀ 250,551
฀ Trade฀receivables฀ 19,148฀ 1,070฀ 9,254฀ 5,214฀ 7,679฀ 42,365
฀ Other฀current฀assets฀ 5,209฀ 12,039฀ 1,625฀ 636฀ 1,939฀ 21,448
฀ Other฀non-current฀receivables฀ 977฀ –฀ –฀ –฀ –฀ 977
฀ Total฀current฀liabilities฀ (57,217)฀ (18,121)฀ (16,677)฀ (3,355)฀ (7,153)฀ (102,523)
฀ ฀ 32,509฀ 51,108฀ 64,781฀ 32,707฀ 31,713฀ 212,818
฀
฀2008
฀ Cash฀and฀cash฀equivalents฀ 195,898฀ 104,196฀ 55,080฀ 29,715฀ 23,755฀ 408,644
฀ Trade฀receivables฀ 43,584฀ 1,252฀ 25,451฀ 6,607฀ 5,660฀ 82,554
฀ Other฀current฀assets฀ 11,257฀ 28,492฀ 5,417฀ 736฀ 4,251฀ 50,153
฀ Other฀non-current฀receivables฀ 1,700฀ 9,192฀ –฀ –฀ –฀ 10,892
฀ Total฀current฀liabilities฀ (216,542)฀ (16,888)฀ (17,382)฀ (4,939)฀ (7,766)฀ (263,517)
฀ ฀ 35,897฀ 126,244฀ 68,566฀ 32,119฀ 25,900฀ 288,726
A change of 10% in foreign currency exchange rates relative to US$ at the reporting date would increase/decrease equity
and profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant.
฀ Profit฀and฀Loss
฀ ฀ 10%฀ 10%฀฀
฀ strengthened฀ weakened฀
฀ US$’000฀ US$’000
฀Group
฀ 2009
฀ S$฀against฀US$฀ 5,111฀ (5,111)
฀ Euro฀against฀US$฀ 6,478฀ (6,478)
฀ GBP฀against฀US$฀ 3,271฀ (3,271)
฀ Others฀against฀US$฀ 3,171฀ (3,171)
฀
฀2008
฀ S$฀against฀US$฀ 12,624฀ (12,624)
฀ Euro฀against฀US$฀ 6,857฀ (6,857)
฀ GBP฀against฀US$฀ 3,212฀ (3,212)
฀ Others฀against฀US$฀ 2,590฀ (2,590)
AR09 pg1-64_Final.indd 53 10/2/2009 10:38:11 AM