Notes to the financial statements
Sensitivity analysis At the balance sheet date, management assessed that an increase/(decrease) of 25 basis points in the interest rates would have no significant impact to the results of the Association. Price risk Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. Sensitivity analysis The Association’s investments are designated as held for trading investments. A 10% increase or decrease in the underlying market prices at the reporting date, with all variables held constant would increase or decrease income by $2,255,324 (2009: $1,692,144). Capital/Funds Management The Association is a society with no share capital. The Association builds up its Capital/Funds from donations received and also through prudent management of its financial resources. The capital of the Association includes reserve funds in its Accumulated Fund, Sinking Fund, General Endowment Fund and other funds. The Associations’ Funds are closely monitored to ensure that there are sufficient funds to support its programme and activities. The Association is not subject to externally imposed Capital/Funds requirements.
91