30 FINANCIAL RISK AND CAPITAL MANAGEMENT CONTINUED¡
(e) Foreign currency exposure
For overseas subsidiaries, associated companies and joint ventures, which consist of non-Hong Kong dollar assets, the
Group generally monitors the development of the Group’s cash flows and debt market and, when appropriate, would expect
to refinance these businesses with local currency borrowings.
Currency risk as defined by HKFRS 7 arises on financial instruments denominated in a currency that is not the functional
currency and being of a monetary nature. Di
erences resulting from the translation of financial statements of overseas
subsidiaries into the Group’s presentation currency are therefore not taken into consideration for the purpose of the
sensitivity analysis for currency risk.
The impact of a hypothetical 5% weakening of the HK dollar against all exchange rates at the end of the reporting period,
with all other variables held constant, on the Group’s profit for the year is set out as below.
Hypothetical increase/
(decrease) in profit
2015
2014
HK$’000
HK$’000
Renminbi
16,667
54,152
United States dollar
(1,340,450)
(1,341,835)
Singapore dollar
91
(979)
(1,323,692)
(1,288,662)
Notes to the
Financial Statements
113
ANNUAL REPORT 2015
HUTCHISON PORT HOLDINGS TRUST
