FGV Audited Financial Statements 2020

4 FINANCIAL RISK MANAGEMENT (continued) (a) Financial risk management policies (continued) Market risk (continued) (ii) Price risk Price risk is the risk that the fair value or future cash flows of the Group’s financial instruments will fluctuate because of changes in market prices (other than finance or exchange rates). Equity price risk The Group is exposed to equity price risk arising from its investment in quoted and unquoted equity instruments. The quoted equity investments are listed on the Bursa Malaysia and foreign stock exchanges and classified as financial assets at fair value through other comprehensive income or financial asset at fair value through profit or loss based on the purpose for which the quoted equity investments were acquired. Unquoted investments are valued using the Price Earnings (“PE”)/ Price to Book (“PB”) comparative method and classified as financial assets at fair value through other comprehensive income. The sensitivity analysis in relation to equity price risk is as follows: Group 2020 2019 Financial assets Sensitivity factor Impact to profit after tax Impact to equity Impact to profit after tax Impact to equity RM’000 RM’000 RM’000 RM’000 Fair value through other comprehensive income: - unquoted Comparable PE multiple and PB multiple variance by 5% - 7,034 - 5,184 - quoted Share price variance by 5% - 178 - 187 Fair value through profit or loss - quoted Share price variance by 5% 2,592 - 2,240 - Total impact 2,592 7,212 2,240 5,371 56 Notes to the Financial Statements For The Financial Year Ended 31 December 2020 FGV HOLDINGS BERHAD Audited Financial Statement 2020