29 FINANCIAL INSTRUMENTS
(continued)
Offsetting financial assets and financial liabilities
The disclosures set out in the tables below include financial assets and financial liabilities that:
• are offset in the Group’s statement of financial position; or
• are subject to an enforceable master netting arrangement, irrespective of whether they are
offset in the statement of financial position.
Financial instruments such as loans and receivables and financial liabilities are not disclosed in
the tables below unless they are offset in the statement of financial position.
The Group’s derivative transactions that are not transacted on an exchange are entered into
under International Swaps and Derivatives Association (“ISDA”) Master Netting Agreements. In
general, under such agreements the amounts owed by each counterparty that are due on a
single day in respect of all transactions outstanding in the same currency under the agreement
are aggregated into a single net amount being payable by one party to the other. In certain
circumstances, for example when a credit event such as a default occurs, all outstanding
transactions under the agreement are terminated, the termination value is assessed and only a
single net amount is due or payable in settlement of all transactions.
The above ISDA agreements do not meet the criteria for offsetting in the statement of financial
position. This is because they create a right of set-off of recognised amounts that is enforceable
only following an event of default, insolvency or bankruptcy of the Group or the counterparties.
In addition, the Group and its counterparties do not intend to settle on a net basis or to realise
the assets and settle the liabilities simultaneously.
Financial assets and financial liabilities subject to offsetting and enforceable master
netting arrangement
Gross
amounts of
recognised
financial
assets/
(liabilities)
Gross
amount of
recognised
financial
assets/
(liabilities)
offset in the
statement of
financial
position
Net amounts
of financial
assets/
(liabilities)
presented
in the
statement of
financial
position
Related
amounts not
offset in the
statement of
financial
position Net amount
$’000
$’000
$’000
$’000
$’000
Group
31 December 2014
Financial assets
Forward exchange
contracts
353
–
353
–
353
Financial liabilities
Interest rate swaps
(14,135)
–
(14,135)
–
(14,135)
Pursuing Growth | 183
