Wah Seong Corporation Berhad Annual Report 2019

157 ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 20 AMOUNTS OWING BY/(TO) JOINT VENTURES (CONTINUED) (b) Amounts owing to joint ventures (continued) The Group’s amounts owing to joint ventures exposure to foreign currency (a currency which is other than the functional currency of the Group entities) risk were: Group 2019 2018 RM’000 RM’000 - Japanese Yen 5,311 3,757 - China Renminbi 235 202 5,546 3,959 21 DERIVATIVE FINANCIAL ASSETS/(LIABILITIES) Contract/ notional amount Assets Liabilities Group RM’000 RM’000 2019 Current Non-hedging derivatives Financial instruments at fair value through profit or loss - Forward currency contracts USD35,623,440 1,101 (1,860) 2018 Current Non-hedging derivatives Financial assets at fair value through profit or loss - Forward currency contracts USD4,721,589 146 - The Company did not hold any derivative financial instruments as at 31 December 2019 (2018: nil). Non-hedging derivatives The Group uses forward currency contracts to manage some of the transaction exposures and limit its exposure to adverse fluctuation in foreign currency. These contracts are not designated as cash flow or fair value hedges. Forward currency contracts The Group enters into foreign currency forward contracts to protect the Group from movements in exchange rates by establishing the rate at which a foreign currency asset or liability will be settled. Forward currency contracts are mainly used to hedge certain trade receivables and trade payables denominated in United States Dollar (2018: United States Dollar) for which firm commitments existed at the reporting date, extending to December 2020 (2018: June 2019).