Sustainability and Governance Report slide image

Sustainability and Governance Report

[Note Notes to the FINANCIAL STATEMENTS 28. Financial risk management objectives and policies (cont'd) (d) Liquidity risk (cont'd) The table below shows the contractual expiry by maturity of the Company's contingent liabilities and commitments. The maximum amount of the corporate guarantee contracts are allocated to the earliest period in which the guarantee could be called. One year One to or less $'000 five years $'000 Over five years Total $'000 $'000 29 29 Company 2020 Corporate guarantee 2019 Corporate guarantee Fair value of financial instruments 1,851 1,851 Fair value is the amount at which the instrument could be exchanged in a current transaction between knowledgeable willing parties in an arm's length transaction, other than in a forced or liquidation sale. Fair values are obtained from quoted market prices, discounted cash flow models and option pricing models as appropriate. Financial instruments whose carrying amounts are reasonable approximation of fair value Management has determined that the carrying amounts of cash and bank balances (Note 14), trade receivables (Note 12), other receivables (Note 13), trade and other payables (Note 21), bills payable (Note 22), lease liabilities (Note 19) and bank borrowings (Note 23) at the end of the reporting period, based on their notional amounts, are reasonable approximations of their fair value, either due to their short-term nature or that they are floating rate instruments that are re-priced to market interest rates on or near the end of the reporting period. There are no significant differences between the fair values and the carrying amounts of non-current trade and other receivables and bank borrowings. 97
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