Page 80 - Forterra

78 FORTERRA
ANNUAL REPORT 2012
NOTES TO THE
FINANCIAL STATEMENTS
7 DERIVATIVE FINANCIAL ASSETS AND LIABILITIES
Group Trust
2012 2011 2012 2011
$’000 $’000 $’000 $’000
Financial derivative assets
Interest rate cap used for hedging – 4 – –
Financial derivative liabilities
Derivative component of convertible
debt securities (54) (88) (54) (88)
Interest rate swaps used for hedging (1,240) (126) (166) (126)
(1,294) (214) (220) (214)
Expiring within 1 year (166) 4 (166) –
Expiring between 1 and 5 years (1,128) (214) (54) (214)
Derivative financial assets and liabilities relate primarily to the fair value of interest rate cap and
floating-to-fixed interest rate swaps entered into to manage the interest rate risk on the United
States dollar denominated floating rate debts. The derivative financial liabilities also include the
derivative component of convertible debt securities issued in 2011, as disclosed in Note 12. The fair
value of the derivative financial assets and liabilities are based on the valuations undertaken by
independent professional valuers. The notional amounts are disclosed in Note 28(d).
8 TRADE AND OTHER RECEIVABLES
Group Trust
2012 2011 2012 2011
$’000 $’000 $’000 $’000
Trade receivables 1,512 4,957 – –
Amounts due from subsidiaries, non-trade 69,279 – 75,655 79,104
Other receivables 25,513 32,764 1,792 2,355
96,304 37,721 77,447 81,459
Prepayments 3,642 5,988 200 –
99,946 43,709 77,647 81,459
Trade and other receivables of the Group are primarily denominated in Chinese Renminbi (“RMB”).
Amounts due from subsidiaries of the Trust relate mainly to partial payments on behalf of the Trust’s
investment holding vehicles for the acquisition of Central Park Mall and Huai Hai Mall.
As at 31 December 2012, included in other receivables of the Group is a consideration due from the
buyer of the Group’s equity interest in LuxChina Property Development Co., Ltd of approximately
S$15,882,000 (2011: S$16,695,000), which will, as planned by management of the Trust and the
buyer, be offset against the same amount (Note 13) due to a related party of the buyer. The
movement during the year represents exchange difference on translation.