Notes to the Financial Statements FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 18 DERIVATIVE FINANCIAL ASSETS/(LIABILITIES) (CONTINUED) Contract/ notional amount Assets Liabilities RM’000 RM’000 Group 2022 Current Derivative istruments at fair value through profit or loss - Forward currency contracts RM 66,856,000 USD 17,655,000 CNY 15,075,000 SGD 12,226,000 EUR 1,605,000 82 (2,627) The Company did not hold any derivative financial instruments as at 31 December 2023 (2022: nil). 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, Singapore Dollar, Ringgit Malaysia, Euro Dollar and Australian Dollar for which firm commitments existed at the reporting date, extending to November 2024. Gains or losses arising from fair value changes of its financial assets and financial liabilities During the financial year, the Group recognised a loss of RM1,374,000 (2022: RM2,422,000) in the profit or loss arising from fair value changes of its derivative financial assets and liabilities. The method and assumptions applied in determining the fair value of derivatives are disclosed in Note 46. Integrated Annual Report 2023 242
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