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ON A RAPID RISE

NOTES TO
FINANCIAL STATEMENTS (CONT’D)

31 March 2015

9 DERIVATIVE FINANCIAL INSTRUMENTS

The table below sets out the notional principal amounts and the positive and negative fair values of the Group’s
and University Company’s outstanding derivative financial instruments at the end of the reporting period
(comprising foreign currency forwards). Positive and negative fair values represent the mark-to-market values
of the derivative contracts and are termed as derivative assets and derivative liabilities respectively. Notional
principal amounts are the amount of principal underlying the contract at the end of reporting date.

Contractual maturity Fair value

Within Derivative Derivative

1 year Total assets liabilities

Group and University Company $’000 $’000 $’000 $’000

2015

Foreign currency forwards 948,259 948,259 4,219 11,665

2014

Foreign currency forwards 712,670 712,670 5,919 -

As the maturity of the forward exchange contracts is less than a year, the fair value of forward exchange contracts
is estimated by determining the difference between the contractual forward price and the forward price at the end
of the reporting period for the residual period to maturity of the contract.

Changes in the fair value of the foreign currency forwards are included as part of the fair value loss on derivative
financial instruments in Note 23.

NANYANG TECHNOLOGICAL UNIVERSITY AND ITS SUBSIDIARIES 63