N o t e s t o t h e f i n a n c i a l s t a t e m e n t s
Year ended 31 March 2015
31 Financial risk management (continued)
Total
return
Unitholders’
funds
100 bp 100 bp 100 bp 100 bp
increase decrease increase decrease
$’000
$’000
$’000
$’000
Trust
2015
Fixed rate instruments
Loans and borrowings
– Finance costs
(3,191)
3,191
–
–
Collateral loan
– Finance costs
(3,000)
3,000
–
–
Variable rate instruments
Loans and borrowings
– Finance costs
(20,373)
20,373
–
–
Interest rate swaps
– Finance costs
11,382 (11,382)
–
–
– Change in fair value
24,574 (24,574)
3,244
(3,244)
Cross currency swaps
– Change in fair value
(4,290)
4,290
–
–
5,102
(5,102)
3,244
(3,244)
2014
Fixed rate instruments
Investment in debt securities
– Change in fair value
7
(7)
–
–
Loans and borrowings
– Finance costs
(4,399)
4,399
–
–
Collateral loan
– Finance costs
(3,000)
3,000
–
–
Variable rate instruments
Loans and borrowings
– Finance costs
(13,912)
13,912
–
–
Interest rate swaps
– Finance costs
7,882
(7,882)
–
–
– Change in fair value
11,517
(11,517)
5,651
(5,651)
Cross currency swaps
– Change in fair value
(5,564)
5,564
–
–
(7,469)
7,469
5,651
(5,651)
Market price risk
Market price risk arises from the Group’s ECS and Trust’s collateral loan which are accounted for as a financial liability at
fair value through profit or loss. The fair value of the collateral loan is determined based on the method described in Note
33. Changes in the market price of the ECS will result in changes in the fair value of the collateral loan. As at the reporting
date, a 1% increase in the ECS market price will result in a decrease on the total return (before any tax effects) of the Group
and the Trust of $3,660,000 (2014: $3,411,000). A 1% decrease in the market price of the ECS would have an equal but
opposite effect on the total return of the Group and the Trust. The analysis was performed on the same basis for 2014 and
assumes that all other variables remain the same.
ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT 2014/15
