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Notes To The Consolidated Financial Statements
(Expressed in Renminbi)
1
/ China Communications Services Corporation Limited
43 Financial risk management and fair values
(continued)
(d) Currency risk
(continued)
Exposure to currency risk
(continued)
The Group
2011
2010
Increase/
Effect on
Increase/
Effect on
(decrease) profit after
Effect
(decrease)
profit after
Effect
in foreign
tax and on other
In foreign
tax and
on other
exchange retained components
exchange
retained components
rates
profits of equity
rates
profits
of equity
‘000
‘000
‘000
‘000
United States dollars
5% 2,918
–
5% 9,644
–
(5)% (2,918)
–
(5)% (9,644)
–
Hong Kong dollars
5% 2,426
–
5% 5,493
–
(5)% (2,426)
–
(5)% (5,493)
–
Nigerian Naira
5% 1,730
–
5% 2,160
–
(5)% (1,730)
–
(5)% (2,160)
–
Ethiopian Birr
5% 3,545
–
5%
83
–
(5)% (3,545)
–
(5)%
(83)
–
Saudi Arabian Riyal
5% 1,274
–
5%
453
–
(5)% (1,274)
–
(5)% (453)
–
Results of the analysis as presented in the above table represent an aggregation of the instantaneous
effects on each of the Group’s entities’ profit after tax and equity measured in the respective functional
currencies, translated into RMB at the exchange rate ruling at the balance sheet date for presentation
purpose.
The sensitivity analysis assumes that the change in foreign exchange rates had been applied to re-
measure those financial instruments held by the Group which expose the Group to foreign currency
risk at the balance sheet date, include inter-company payables and receivables within the Group which
are denominated in a currency other than the functional currencies of the lender of the borrower. The
analysis excludes differences that would result from the translation of the financial statements of
foreign operations into the group’s presentation currency. The analysis is performed on the same basis
for 2010.