ST Engineering Annual Report 2020

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) C16 Derivative financial instruments (continued) The amounts at the reporting date relating to items designated as hedged items were as follows: Group Change in value used for calculating hedge ineffectiveness Cash flow hedge reserve $’000 $’000 2020 Foreign currency risk Sales 16,834 21,088 Receivables (5) (335) Purchases 9,797 2,417 Payables (89) 385 Embedded derivatives 11,520 (1,636) Interest rate risk Variable rate borrowings (19,136) (24,316) 2019 Foreign currency risk Sales (12,300) (8,370) Receivables 129 (330) Purchases (8,844) (5,938) Payables (566) (268) Embedded derivatives (1,029) (13,156) Interest rate risk Variable rate borrowings (9,832) (7,001) There are no balances remaining in the cash flow hedge reserve from hedging relationships for which hedge accounting is no longer applied. 22 3 ANNUAL REPORT 2 0 2 0 / CORPORATE OVERVI EW PERFORMANCE REVI EW SUSTAINABI L ITY CORPORATE GOVERNANCE F INANCIAL REPORT