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FINANCIAL REPORTS
191
Bursa Malaysia •
Annual Report 2015
NOTES TO THE
FINANCIAL STATEMENTS
31 DECEMBER 2015
38. Fair value (cont’d.)
(b) Financial instruments that are not carried at fair value (cont’d.)
The carrying amount of staff loans receivable approximates its fair value, and is estimated by discounting the expected future cash flows using
the current interest rates for loans with similar risk profiles. The staff loans receivable is measured at Level 3 under the measurement hierarchy.
Group
Company
Carrying
amount
Fair value
Carrying
amount
Fair value
RM’000
RM’000
RM’000
RM’000
At 31 December 2015
Staff loans receivable (Note 17)
5,026
4,830
4,486
4,309
At 31 December 2014
Staff loans receivable (Note 17)
6,671
6,416
6,078
5,843
39. Capital management
The Group manages its capital with the objective of maximising shareholders’ returns. To achieve this, the Group takes into consideration and ensures
the sufficiency of funds for operations, risk management and development. Although the Group’s policy is to distribute at least 75% of its profits to
shareholders, it has been able thus far to distribute at least 90% of its profits every year whilst ensuring that its pool of funds for future development
is at a sufficient level.
The Group is not subject to any externally imposed capital requirements. However, the Group is required to set aside funds for the CGF and DCF in
accordance with the business rules of its clearing house subsidiaries.
Total capital managed at Group level, which comprises shareholders’ funds and deferred capital grants, stood at RM807,537,000 (2014:
RM753,893,000) as at the end of the financial year.
There has been no change in the above capital management objectives, policies and processes compared to the previous year.
40. Segment information
(a) Reporting format
For management reporting purposes, the Group is organised into operating segments based on market segments as the Group’s risks and rates
of return are affected predominantly by the macro environment of the different markets.
The securities, derivatives and others market segments are managed by the respective segment divisional heads responsible for the performance
of the respective segments under their charge.