Vtech 2016 Annual Report Download - page 69

65VTech Holdings Limited Annual Report 2016
20 Financial Risk Management and Fair Values (Continued)
(d) Liquidity risk (Continued)
The following tables detail the remaining contractual maturities at the end of reporting period of the Group’s derivative and non-derivative
 nancial liabilities, which are based on contractual undiscounted cash  ows and the earliest date the Group can be required to pay:
Contractual undiscounted cash flows
Carrying
amount Total
Within
1 year or
on demand
More than
1 year but
less than
2 years
More than
2 years but
less than
5 years
More than
5 years
US$ million US$ million US$ million US$ million US$ million US$ million
At 31 March 2016
Trade creditors 188.4 188.4 188.4–––
Other creditors and accruals 156.3 156.3 156.3–––
Derivatives settled gross:
Forward foreign exchange contracts
– cash flow hedge (note 20(b)(i))
– outflow 286.7 286.7–––
– inflow (291.6) (291.6) – – –
At 31 March 2015
Trade creditors 186.1 186.1 186.1–––
Other creditors and accruals 155.4 155.4 155.4 – – –
Derivatives settled gross:
Forward foreign exchange contracts
– cash flow hedge (note 20(b)(i))
– outflow 460.1 407.1 53.0 – –
– inflow (465.6) (412.3) (53.3) – –
(e) Fair values measurement
The fair values of trade debtors, deposits and cash and trade
creditors and accruals approximate their carrying amounts due to
the short-term maturities of these assets and liabilities.
The fair value of forward foreign exchange contracts is determined
using forward exchange market rates at the end of the reporting
period. Other  nancial assets measured at fair value are not
material.
All  nancial instruments are carried at amounts not materially
di erent from their fair values as at 31 March 2015 and 31 March
2016.
Financial instruments carried at fair value
The Group’s  nancial instruments are measured at fair value at
the end of the reporting period on a recurring basis, categorised
into three-level fair value hierarchy as de ned in IFRS 13, Fair Value
Measurement. The level into which a fair value measurement is
classi ed and determined with reference to the observability
and signi cance of the inputs used in the valuation technique as
follows:
• Level 1 valuations: Fair values measured using only Level 1
inputs i.e. unadjusted quoted prices in active markets for
identical assets or liabilities at the measurement date
• Level 2 valuations: Fair values measured using Level 2 inputs
i.e. observable inputs which fail to meet Level 1, and not using
signi cant unobservable inputs. Unobservable inputs are
inputs for which market data are not available
• Level 3 valuations: Fair values measured using signi cant
unobservable inputs
At 31 March 2016, the fair values of the forward foreign exchange
contracts included in  nancial assets and  nancial liabilities were
US$5.5 million (2015: US$6.6 million) and US$0.6 million (2015:
US$1.1 million) respectively. At 31 March 2016 and 31 March 2015,
the fair values of all forward foreign exchange contracts were
categorised as Level 2.
During the year ended 31 March 2016, there were no transfers
between Level 1 and Level 2, or transfers into or out of Level 3 of
the fair value hierarchy classi cations.
The fair value of forward foreign exchange contracts in Level 2 is
determined by using the forward exchange rates at the end of the
reporting period and comparing them to the contractual rates.
21 Commitments
2016
US$ million
2015
US$ million
(i) Capital commitments for property,
plant and equipment
Authorised but not contracted for 29.6 26.3
Contracted but not provided for 14.5 8.6
44.1 34.9
(ii) Capital commitments for
investment in a subsidiary
Contracted but not provided for 72.0 –
72.0 –
(iii) Operating lease commitments
The future aggregate minimum
lease payments under
non-cancellable operating
leases are as follows:
Land and buildings
In one year or less 18.0 16.1
Between one and two years 17.7 13.3
Between two and five years 43.6 35.0
In more than five years 16.9 15.7
96.2 80.1