Sasbadi Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS 129 ANNUAL REPORT 2017 23. Financial instruments (continued) 23.6 Market risk (continued) 23.6.2 Interest rate risk (continued) Exposure to interest rate risk The interest rate profile of the Group’s significant interest -bearing financial instruments, based on carrying amounts as at the end of the reporting period was: Group 2017 2016 RM’000 RM’000 Floating rate instruments Financial assets 708 10,868 Financial liabilities (36,523) (18,546) (35,815) (7,678) Fixed rate instruments Financial liabilities (173) (1,490) Interest rate risk sensitivity analysis Fair value sensitivity analysis for fixed rate instruments The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss, and the Group does not designate derivatives as hedging instruments under a fair value hedge accounting model. Therefore, a change in interest rates at the end of the reporting period would not affect profit or loss. Cash flow sensitivity analysis for variable rate instruments A change of 100 basis points (bps) in interest rates at the end of the reporting period would have increased/(decreased) post-tax profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency rates, remained constant. Profit or loss 100 bps increase 100 bps decrease Group RM’000 RM’000 2017 Floating rate instruments (272) 272 2016 Floating rate instruments (58) 58