Page 64 - QFCRA Annual Report 2014
P. 64
es to the Financial
Statements
FOR THE YEAR ENDED 31 DECEMBER 2014
14.3 Market risk Interest rate risk individual stocks. The QFC Regulatory
Market risk is the risk that changes Interest rate risk reflects the risk of Authority is not exposed to equity
in market prices, such as foreign change in interest rates, which price risk since it does not hold any
exchange rates, interest rates and might affect future earnings. The investment in equity instruments.
equity price risk will affect the QFC Regulatory Authority is not 14.4 Determination of fair values
QFC Regulatory Authority’s surplus exposed to interest rate risk on Fair value is the price that would
or the value of its holdings of its interest bearing assets (bank be received to sell an asset or paid
financial instruments. deposits) as the interest rate on to transfer a liability in an orderly
Currency risk bank deposits is fixed. The statement transaction between market
Currency risk is the risk that the of activities and equity is not participants at the measurement
value of financial instruments sensitive to the effect of reasonable date. The QFC Regulatory Authority
will fluctuate due to changes in possible changes in interest does not have any financial assets
foreign exchange rates. The QFC rates, with all other variables held or financial liabilities which are
Regulatory Authority’s principal constant, as the QFC Regulatory measured at fair value. Further,
business is conducted in United Authority does not hold any floating the carrying values of the QFC
States Dollar and Qatari Riyal. rate financial assets and financial Regulatory Authority’s financial
As the Qatari Riyal is pegged to liabilities at the reporting date. assets and financial liabilities are the
the United States Dollar, there Equity price risk reasonable approximation of their
is considered to be minimal Equity price risk is the risk that the fair values. Accordingly disclosure
currency risk. fair values of equities decrease as regarding the fair values and fair
a result of changes in the levels value hierarchy is not presented in
15. COMPARATIVE FIGURES of equity indices and the value of these financial statements.
Certain comparative figures in the current year’s financial net assets or net profit of the
have been reclassified to statements. Such reclassification previous year.
conform to the presentation did not have any impact on the
64 ANNUAL REPORT 2014
Statements
FOR THE YEAR ENDED 31 DECEMBER 2014
14.3 Market risk Interest rate risk individual stocks. The QFC Regulatory
Market risk is the risk that changes Interest rate risk reflects the risk of Authority is not exposed to equity
in market prices, such as foreign change in interest rates, which price risk since it does not hold any
exchange rates, interest rates and might affect future earnings. The investment in equity instruments.
equity price risk will affect the QFC Regulatory Authority is not 14.4 Determination of fair values
QFC Regulatory Authority’s surplus exposed to interest rate risk on Fair value is the price that would
or the value of its holdings of its interest bearing assets (bank be received to sell an asset or paid
financial instruments. deposits) as the interest rate on to transfer a liability in an orderly
Currency risk bank deposits is fixed. The statement transaction between market
Currency risk is the risk that the of activities and equity is not participants at the measurement
value of financial instruments sensitive to the effect of reasonable date. The QFC Regulatory Authority
will fluctuate due to changes in possible changes in interest does not have any financial assets
foreign exchange rates. The QFC rates, with all other variables held or financial liabilities which are
Regulatory Authority’s principal constant, as the QFC Regulatory measured at fair value. Further,
business is conducted in United Authority does not hold any floating the carrying values of the QFC
States Dollar and Qatari Riyal. rate financial assets and financial Regulatory Authority’s financial
As the Qatari Riyal is pegged to liabilities at the reporting date. assets and financial liabilities are the
the United States Dollar, there Equity price risk reasonable approximation of their
is considered to be minimal Equity price risk is the risk that the fair values. Accordingly disclosure
currency risk. fair values of equities decrease as regarding the fair values and fair
a result of changes in the levels value hierarchy is not presented in
15. COMPARATIVE FIGURES of equity indices and the value of these financial statements.
Certain comparative figures in the current year’s financial net assets or net profit of the
have been reclassified to statements. Such reclassification previous year.
conform to the presentation did not have any impact on the
64 ANNUAL REPORT 2014
