Page 209 - SC SCAR 2023 ENGLISH Flipbook

25.5 Market risk
Market risk is the risk that changes in market prices, such as interest rates that will affect the amount the SC invested in fixed deposits and quoted unit trust. Such risks will be reflected in the price and the carrying value of the financial assets.
25.5.1 Interest rate risk
The SC’s interest-bearing assets mainly comprise fixed deposits with banks and bank balances.
The interest rate profile of the SC’s significant interest-bearing financial instruments, based on carrying amounts as at the end of the reporting period was:
PART 5 ORGANISATION INFORMATION
Fixed rate instruments
Financial assets
Interest rate risk sensitivity analysis
Fair value sensitivity analysis for fixed rate instruments
2023 RM’000
524,828
2022 RM’000
1,013,715
The SC does not have any fixed rate financial assets at fair value through profit or loss. Therefore, a change in interest rates at the end of the reporting period would not affect profit or loss.
25.5.2 Price risk
Price risk arises from the movement in price of the quoted unit trust. Performance on the quoted unit trust is regularly updated to Management.
25.6 Fair value information
The carrying amounts of cash and cash equivalents, short-term receivables and payables reasonably approximate their fair values due to the relatively short term nature of these financial instruments.
The carrying amount of fixed deposits is assumed to reasonably approximate their fair values.
The table below analyses financial instruments not carried at fair value for which fair value is disclosed, together with their carrying amounts shown in the statement of financial position.
SECURITIES COMMISSION MALAYSIA ANNUAL REPORT 2023 207