FGV Annual Report 2015

218 Notes to the Financial Statements For The Financial Year Ended 31 December 2015 Felda Global Ventures Holdings Berhad Annual Integrated Report 2015 4 FINANCIAL RISK MANAGEMENT (CONTINUED) (a) Financial risk management policies (continued) Market risk (continued) (ii) Price risk Price risk is the risk that the fair value or future cash flows of the Group’s financial instruments will fluctuate because of changes in market prices (other than finance or exchange rates). Equity price risk The Group is exposed to equity price risk arising from its investment in quoted and unquoted equity instruments. The quoted equity investments are listed on the Bursa Malaysia and foreign stock exchanges and classified as available-for-sale financial assets or financial asset at fair value through profit or loss based on the purpose for which the quoted equity investments were acquired. Unquoted investments are valued using the Price Earnings (“PE”)/Price to Book (“PB”) comparative method and classified as available-for-sale financial assets. The sensitivity analysis in relation to equity price risk is as follows: Group 2015 2014 Impact Impact to profit Impact to profit Impact Financial assets Sensitivity factor after tax to equity after tax to equity RM’000 RM’000 RM’000 RM’000 Available-for: - sale - unquoted Comparable PE multiple and PB multiple variance by 5% - 12,568 - 10,289 - quoted Share price variance by 5% - 3,176 - 204 Fair value through profit or loss - quoted Share price variance by 5% 2,471 - 804 - Total impact 2,471 15,744 804 10,493