Maxis Berhad
Annual Report 2014
174
Notes to the
Financial Statements
31 December 2014
33 FINANCIAL RISK MANAGEMENT (CONTINUED)
(a) Market risk (continued)
(ii) Interest rate risk (continued)
The sensitivity of the Group’s and of the Company’s profit before tax for the financial year and equity to a reasonably
possible change in RM and USD interest rates with all other factors held constant and based on composition of liabilities
with floating interest rates at the reporting date are as follows:
Impact on profit before tax for the financial year
Impact on equity
(1)
Group
Company
Group and Company
2014
RM’000
2013
RM’000
2014
RM’000
2013
RM’000
2014
RM’000
2013
RM’000
RM
- increased by 0.5% (2013: 0.5%)
(14,958)
(3,994)
(16,958)
(5,244)
20,345
22,735
- decreased by 0.5% (2013: 0.5%)
14,958
3,994
16,958
5,244
(20,345)
(22,735)
USD
- increased by 0.5% (2013: 0.5%)
(2,787)
(1,186)
-
-
26,815
38,932
- decreased by 0.5% (2013: 0.5%)
2,787
1,186
-
-
(26,815)
(38,932)
Note:
(1)
Represents cash flow hedging reserve
The impacts on profit before tax for the financial year are mainly as a result of interest expenses/income on floating
rate payables, loan from a related party and borrowings not in a designated hedging relationship. For borrowings in a
designated hedging relationship, as these are effectively hedged, the interest rate movements will not have any impact on
the statement of profit or loss.
