KUWAIT ENERGY plc GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2011
F-156
58.
OPERATING LEASE ARRANGEMENTS
2011
2010
USD 000’s
USD 000’s
Minimum lease payments under operating leases recognised in
the consolidated statement of income
1,781
1,548
At the consolidated statement of financial position date, the Group had outstanding commitments for future
minimum lease payments under operating leases, which fall due as follows;
Within one year
1,410
1,135
Between two years and five years
591
918
2,001
2,053
Operating lease payments represent rentals payable by the Group for certain of its office properties. Leases
are negotiated for an average term of one to two years and rentals are fixed for an average of two years with
an option to extend for a further two years at the then prevailing market rate.
59.
FINANCIAL INSTRUMENTS
Significant accounting policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the
basis of measurement and the basis on which income and expenses are recognised, in respect of each class of
financial asset and financial liability are disclosed in note 3 to these consolidated financial statements.
Categories of financial instruments
2011
2010
USD 000’s
USD 000’s
Financial assets
Trade and other receivables
176,055
135,199
Cash and bank balances
40,477
58,092
Financial liabilities
Long-term loans
45,000
53,000
Trade and other payables
52,964
49,907
Derivative financial instruments
750
4,337
Current portion of long term loans
8,000
-
Financial risk management objectives
The Group’s management monitors and manages the financial risks relating to the operations of the Group
through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include
market risk (including commodity price risk, interest rate risk and foreign currency risk), credit risk and
liquidity risk.
