Yinson Annual Report 2018

37. DERIVATIVES Group 2018 2017 Assets Liabilities Assets Liabilities RM’000 RM’000 RM’000 RM’000 Non-current Hedging derivatives: - Interest rate swaps – (42,349) – (102,031) Current Hedging derivatives: - Interest rate swaps – (3,813) – – Non-hedging derivatives: - Interest rate swaps 1,640 – – (425) The interest rate swaps reflect the positive change in fair value of those interest rate swaps that are not designated in hedge relationship, but are used to manage the exposure to the risk of changes in market interest rates arising from certain floating rate bank loans of the Group. A subsidiary of the Company had entered into a series of USD interest swap contracts with banks. The interest rate swaps reflect the negative change in fair value of those interest rate swaps which have been designated as cash flows hedge and are used to manage the exposure to the risk of changes in market interest rates arising from floating rate bank loans of the subsidiary. The fair values of the interest rate swaps are determined by using the prices quoted by the counterparty banks which are categorised as Level 2 of the fair value hierarchy. There is no transfer from Level 1 and Level 2 or out of Level 3 during the financial year. 38. SIGNIFICANT RELATED PARTY DISCLOSURES For the purposes of these financial statements, parties are considered to be related to the Group if the Group or the Company has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group or the Company and the party are subject to common control or common significant influence. Related parties may be individuals or other entities. Key management personnel are defined as those persons having authority and responsibility for planning, directing and controlling the activities of the Group either directly or indirectly. Corporate Overview Stewardship Governance Accountability 171 Yinson Holdings Berhad Annual Report 2018