Annual Report 2020

2020 Annual Report Transport International Holdings Limited 231 Notes to the Financial Statements (Expressed in Hong Kong dollars unless otherwise indicated) 32 Financial risk management and fair values of financial instruments (continued) (d) Currency risk The Group is exposed to currency risk primarily through purchases of new buses and motor vehicle components from overseas, investments in debt securities and deposits placed at banks that are denominated in a currency other than the functional currency of the entity to which they relate. The currencies giving rise to this risk are primarily British Pounds Sterling and United States dollars. (i) Exposure to currency risk The table below details the Group’s exposure at the end of the reporting period to currency risk arising from recognised assets or liabilities denominated in a currency other than the functional currency of the entity to which they relate. For presentation purposes, the amounts of the exposure are shown in Hong Kong dollars, translated using the spot rate at the end of the reporting period. Differences resulting from the translation of the financial statements of operations outside Hong Kong into the Group’s presentation currency are excluded. Exposure to foreign currencies (expressed in Hong Kong dollars) 2020 2019 British Pounds Sterling United States dollars British Pounds Sterling United States dollars $’ 000 $’ 000 $’ 000 $’ 000 Bank deposits and cash 1,632 534,493 100,731 209,612 Accounts payable and accruals (163,144) (1,287) (90,764) (5,563) Investments in debt securities – 1,155,656 – 1,449,971 Gross exposure arising from recognised assets and liabilities (161,512) 1,688,862 9,967 1,654,020