Disclosure Requirements - FRS 139

 

TIDMTNJ 
 
RNS Number : 5196O 
Tanjong PLC 
30 June 2010 
 

 
 
TANJONG PUBLIC LIMITED COMPANY ("Tanjong" or "the Company") 
-  Disclosure Requirements pursuant to Implementation of FRS 139 "Financial 
Instruments: Recognition and Measurement" 
 
 
1.         INTRODUCTION 
 
We refer to the Directive dated 25 March 2010 issued by Bursa Malaysia 
Securities Berhad ("Bursa Securities") on the above-captioned subject matter 
where a listed issuer is required to release an immediate announcement to Bursa 
Securities upon its board of directors approving the incorporation of any 
gains/losses arising from the fair value changes to its financial liabilities 
where such amount amounted to either 5% or more of the listed issuer's profit 
after tax for the year-to-date, or RM1 million, whichever is higher. 
 
 
2.         DETAILS OF THE FINANCIAL LIABILITIES AND THE REASON FOR THE 
GAINS/LOSSES 
 
In conjunction with the release of the Tanjong Group's financial results for the 
first quarter ended 30 April 2010 today, Tanjong Group has recognised a total 
net loss of RM22.5 million or 11.6% of the profit after tax of the Tanjong Group 
for the period ended 30 April 2010 in the hedging reserve in equity arising from 
fair value changes on the Interest Rate Swaps ("IRS") which are marked to market 
as at 30 April 2010. 
 
It is not expected that this loss will significantly impact the Group's cash 
flows. 
 
 
3.         THE BASIS IN ARRIVING AT THE FAIR VALUE CHANGES 
 
The Group has entered into IRS arrangements with counterparty financial 
institutions to hedge its exposure to interest rate fluctuations on certain of 
its borrowings issued at variable rates. 
 
Tanjong Group determines the fair value of the derivative financial liabilities 
relating to the IRS arrangements using valuation techniques which utilise data 
from recognised financial information sources. 
 
Assumptions are based on market conditions existing at each reporting date. The 
fair value is calculated as the present value of the estimated future cash flows 
using the appropriate market based yield curve. 
 
For further details, please refer to Tanjong's Quarterly Report for the First 
Quarter ended 30 April 2010. 
 
This announcement is dated 30 June 2010. 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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