accounting and re p o rting standards for derivative instruments, including certain derivative instruments embedded in other contracts (collectively
re f e rred to as derivatives). 
In accordance with SFAS No. 133, entities are re q u i red to carry all derivative instruments on the balance sheet at fair value. The accounting for
movements in fair value of derivatives depends upon whether it has been designated and qualifies as part of a hedging relationship and, if so, the
reason for holding it. If certain conditions are met, the Company may elect to designate a derivative instrument as a hedge of exposures. If the
hedged exposure is a fair value exposure, movements in fair value are recognized in earnings with the offsetting gain or loss on the hedged item
attributable to the hedged risk. If the hedged exposure is a cash flow exposure, the effective portion of the movement in fair value of the derivative
i n s t rument is initially r e p o rted as a component of other comprehensive income and subsequently reclassified into earnings at the time the
f o recasted transaction impacts earnings. Amounts excluded from the assessment of hedge effectiveness as well as the ineffective portion of
movements in fair value of the derivative instrument are re p o rted in earnings in the current period. Accounting for foreign currency hedges is
similar to the accounting for fair value and cash flow hedges. If a derivative instrument is not designated as a hedge, movements in the fair value
of derivative instruments are recognized in earnings. 
Under the provisions of SFAS No. 133, the method that the Company will use to assess effectiveness of a hedge, as well as the measur e m e n t
a p p roach for determining the ineffectiveness of a hedge, must be established at the inception of a hedge. The Company formally documents all
relationships between hedging instruments and hedged items as well as its risk management objective and strategy for entering into the
transaction. This process includes linking derivatives designated as fair value or cash flow hedges to specific assets, liabilities or firm commitments
on forecasted transactions. This process is repeated on a periodic basis. If at any time the Company determines a hedge is no longer ef f e c t i v e ,
hedge accounting is immediately discontinued and the derivative is marked to market with any gain or loss re c o rded in earnings. 
The Company adopted the provisions of SFAS No. 133 on 1 January 2001 and this had no impact on the Company’s consolidated financial
statements as the Company does not have any derivative financial instruments. Future changes in the fair value for any remaining trading
securities will be re c o rded through earnings. Changes in fair value of available for sale securities will be re c o rded in other comprehensive income. 
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