IREIT Global.
annual report 2014
For the reporting period from 1 November 2013 (date of constitution) to 31 December 2014
Notes to the
Financial Statements
22.
FINANCIAL INSTRUMENTS
(Continued)
(b) Financial risk management objectives and policies
(Continued)
Liquidity risk
The Manager monitors and maintains a level of cash and cash equivalents deemed adequate
by the Manager to finance the Group’s and IREIT’s operations. In addition, the Manager also
monitors and observes the CIS Code concerning limits of total borrowings.
The Manager is of the opinion that, taking into account the fair value of investment
properties, presently available banking facilities and internal financial resources of the
Group, the Group has sufficient working capital for its present requirements within one
year from the end of the reporting period. Hence, financial statements have been prepared
on a going concern basis.
Liquidity risk analysis
The following table details the Group’s and IREIT’s remaining contractual maturity for its
financial liabilities (other than issued and issuable units) based on the agreed repayment
terms. For non-derivative financial liabilities, the table has been drawn up based on the
undiscounted cash flows of financial liabilities based on the earliest date on which the Group
and IREIT can be required to pay.
The Group’s derivative instruments are settled on a gross basis. When the amount payable is
not fixed, the amount disclosed has been determined by reference to the projected interest
rates as illustrated by the yield curves existing at the reporting date. The liquidity analysis
for derivative financial instruments is prepared based on the contractual maturities as the
management considers the contractual maturities are essential for an understanding of the
timing of the cash flows of the derivatives.
The Group’s derivative financial instruments are foreign currency forwards with notional
amount totaling EUR 6.42 million as at 31 December 2014 with contracted net cash flows
due within 1 year from inception date.
