FGV Annual Report 2016

FELDA GLOBAL VENTURES HOLDINGS BERHAD 202 FINANCIAL REPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 4 FINANCIAL RISK MANAGEMENT (CONTINUED) (a) Financial risk management policies (continued) Market risk (continued) (ii) Price risk (continued) 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 2016 2015 Financial assets Sensitivity factor Impact to profit after tax RM'000 Impact to equity RM'000 Impact to profit after tax RM'000 Impact to equity RM'000 Available-for-sale: - unquoted Comparable PE multiple and PB multiple variance by 5% - 12,377 - 12,568 - quoted Share price variance by 5% - 3,335 - 3,176 Fair value through profit or loss - quoted Share price variance by 5% 2,216 - 2,471 - Total impact 2,216 15,712 2,471 15,744