KUWAIT ENERGY plc GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2013
F-63
Discount rate
5%
5%
Inflation
4%
4%
Salary growth rate
6%
6%
25.
TRADE AND OTHER PAYABLES
2013
2012
USD 000’s
USD 000’s
Trade payables
79,101
31,444
Joint venture payables and accruals
14,516
20,461
Salaries and bonus payables
3,000
5,000
96,617
56,905
Current tax payable
9,386
8,926
106,003
65,831
Trade creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The
average credit period taken for trade purchases is 30 days. No interest is charged on the overdue trade payables.
The Group has financial risk management policies in place to ensure that all payables are paid within the pre-
agreed credit terms.
The directors consider that the carrying amount of trade payables approximates their fair value
.
26.
DERIVATIVE FINANCIAL INSTRUMENTS
2013
2012
USD 000’s
USD 000’s
Financial liabilities carried at fair value through
profit or loss
Held for trading derivatives not designated in hedge accounting
relationships (interest rate cap -see below)
162
484
The Group’s derivative financial instruments are all classified as Level 2 in both years. Level 2 fair value
measurements are those derived from inputs other than quoted prices that are observable for the asset or liability
either directly (as prices) or indirectly (derived from prices). The reduction in fair value amounting to USD 322
thousand (2012: USD 266 thousand) is recognised in the consolidated income statement.
Derivatives used for hedging purposes but which do not meet the qualifying criteria for hedge accounting are
classified as ‘Held for trading derivatives’.
Interest rate cap is an agreement to cap the interest rate on facilities at 2 % when the LIBOR is more than 2 % and
equal to or less than 5 %. The interest rate cap matures on 30 June 2014.
The notional amounts of interest rate cap together with the fair value as at 31 December is summarised as follows:
Held for trading Derivatives
Notional principal value
Fair value
(Negative) /Positive
2013
2012
2013
2012
USD 000’s
USD
000’s
USD 000’s
USD 000’s
- Interest rate cap
50,000
50,000
(162)
(484)
