Creative 2009 Annual Report Download - page 52

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52
CREATIVE฀TECHNOLOGY฀LTD฀AND฀ITS฀SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
– For the financial year ended 30 June 2009
30. FINANCIAL RISK MANAGEMENT (cont’d)
(a) Market risk (cont’d)
(i) Price risk (cont’d)
฀ Equity
฀ ฀ 10%฀increase฀ 10%฀decrease฀
฀ US$’000฀ US$’000
฀Group
฀ 2009
฀ Quoted฀equity฀securities฀ 1,547฀ (1,547)
฀2008฀฀
฀ Quoted฀equity฀securities฀ 2,609฀ (2,609)
(ii) Interest rate risk
The Group has balances placed with reputable banks and financial institutions. The Group manages its interest rate risks
on its interest income by placing the cash balances in varying maturities and interest rate terms.
Bank borrowings were fully repaid during the current financial year.
A change of 100 basis points (“bp”) in interest rate at balance sheet 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
฀ ฀ 100bp฀ 100bp฀฀
฀ increase฀ decrease฀
฀ US$’000฀ US$’000
฀Group
฀ 2009
฀ Short-term฀bank฀deposits฀ 1,968฀ (1,968)
฀ 2008
฀ Short-term฀bank฀deposits฀ 3,691฀ (3,691)
฀ Bank฀borrowings฀ (1,000)฀ 1,000
฀ ฀ 2,691฀ (2,691)
AR09 pg1-64_Final.indd 52 10/2/2009 10:38:10 AM