Annual Report 2014 | S P SETIA BERHAD GROUP | 201
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 October 2014
V. FINANCIAL STATEMENTS
45. FAIRVALUE OF FINANCIAL INSTRUMENTS (CONT’D)
(b) Determination of fair value (cont’d)
Amounts owing by subsidiary companies
Amount owing by a former joint venture partner
Redeemable cumulative preference shares
Fixed rate long term borrowings
Floating rate long term borrowings
* The carrying amounts are reasonable approximation of fair values because they are floating rate instruments which are repriced
to market interest rates.
The carrying amounts are reasonable approximation of fair value.
Comparative fair value information is not presented by levels by virtue of the exemption given in FRS 13.
The carrying amounts of all other financial assets and liabilities of the Group and of the Company at the reporting date approximated
or were at their fair values. The fair values of the financial assets and financial liabilities above are determined using discounted cash
flow method. The most significant input being the discount rate that reflects the credit risk of the counterparties.
46. CAPITAL MANAGEMENT
The primary objectives of the Group’s and the Company’s capital management are to ensure that it maintains a strong capital base and
healthy capital ratios in order to support its existing business operations and enable future development of the businesses as well as
maximise shareholders’ value.
The capital structure of the Group and the Company consists of equity attributable to the shareholders of the Company (i.e. share capital,
reserve and retained earnings), Perpetual bond and total debts, which include borrowings.
Management reviews and manages the capital structure regularly and makes adjustments to address changes in the economic
environment and risk characteristics inherent in its business operations. These initiatives may include equity capital raising exercises and
adjustments to the amount of dividends distributed to shareholders. No changes were made in the objectives, policies and processes
during the years ended 31 October 2014 and 31 October 2013.