NOTES TO FINANCIAL STATEMENTS
30 June 2015
Karin Technology Holdings Limited
Annual Report 2015
96
19. PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLES
Group
Company
2015
2015
HK$’000
HK$’000
HK$’000
HK$’000
Prepayments
45,113
–
–
Deposits
3,030
–
–
Other receivables
5,911
6,216
–
_______
_______
_______
_____
54,054
–
Current portion included in prepayments,
deposits and other receivables
(53,456)
–
_______
_______
_______
_____
Non-current portion
598
6,730
–
–
None of the above assets is either past due or impaired. The financial assets included in the above balances,
including deposits and other receivables, relate to receivables for which there was no recent history of default.
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20. FORWARD CURRENCY CONTRACTS
The Group has entered into various forward currency contracts to manage its exchange rate exposures which
did not meet the criteria for hedge accounting under IFRSs. The forward currency contracts are derivatives and
are classified as financial assets at fair value through profit or loss and are stated at fair values at the end of the
reporting period. The fair values were determined by BMI Appraisals Limited, independent professionally qualified
valuers, and disclosed in these financial statements based on valuation techniques for which all inputs which
have a significant effect on the recorded fair value are observable, either directly or indirectly (Level 2 of the fair
value hierarchy as defined in IFRS 7).
'BJS WBMVF MPTTFT PG OPO IFEHJOH DVSSFODZ EFSJWBUJWFT BNPVOUJOH UP ),
),
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debited to profit or loss as “other expenses, net” during the year.
The fair value of the Group’s forward currency contracts is determined by discounting the estimated future cash
flows which are based on the terms and conditions of the forward currency contracts, the historical prices of
the underlying currencies, the contractual period, discount rate and other factors materially affecting the values
of the forward contracts.
During the year, there were no transfers of fair value measurements between Level 1 and Level 2 and no transfers
into or out of Level 3 for the financial instruments.
