Yinson Annual Report 2019

191 Yinson Group Overview Strategy and Sustainability Governance Accountability Annual General Meeting 37. DERIVATIVES Group 2019 2018 Assets Liabilities Assets Liabilities RM’000 RM’000 RM’000 RM’000 Non-current Hedging derivatives: - Interest rate swaps – (36,358) – (42,349) Current Hedging derivatives: - Interest rate swaps – (3,082) – (3,813) Non-hedging derivatives: - Interest rate swaps 893 – 1,640 – 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 tomanage the exposure to the risk of changes inmarket 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.