NOTE 12
FINANCIAL RISK MANAGEMENT (CONTINUED)
Consolidated
2014
$’000
2013
$’000
Current assets
Forward foreign exchange contracts - cash flow hedges
-
100
Total current derivative financial instrument assets
-
100
Current liabilities
Interest rate swap contracts - cash flow hedges
(2,001)
-
Forward foreign exchange contracts - cash flow hedges
(31)
-
Total current derivative financial instrument liabilities
(2,032)
-
Non-current liabilities
Interest rate swaps - cash flow hedges
(1,086)
(7,981)
Total non-current derivative financial instrument liabilities
(1,086)
(7,981)
Total derivative financial instrument liabilities
(3,118)
(7,981)
(iii) Classification of derivatives
Derivatives are classified as hedging instruments and accounted for at fair value in other comprehensive income and
deferred in equity in the hedging reserve. It is reclassified into the income statement when the hedged interest expense
is recognised.
(iv) Derivative financial instruments
Consolidated
30 June 2014
30 June 2013
Weighted
average
interest rate
Balance
Weighted
average
interest rate
Balance
$’000
$’000
Cash and cash equivalents
3.2%
91,284
3.2%
217,375
Net exposure to cash flow
interest rate risk
91,284
217,375
Interest rate risk
Foreign exchange risk
-0.5% +0.5% -10% +10%
At 30 June 2014
Profit
$’000
Equity
$’000
Profit
$’000
Equity
$’000
Profit
$’000
Equity
$’000
Profit
$’000
Equity
$’000
Financial assets
Cash and cash equivalents
(315)
(315)
315 315
-
-
-
-
Derivatives cash flow hedge - foreign exchange
-
-
-
-
-
(31)
-
65
Total increase/(decrease) in financial assets
(315) (315)
315 315
-
(31)
-
65
30 June 2013
Financial assets
Cash and cash equivalents
(760)
(760)
760 760
-
-
-
-
Derivatives cash flow hedge - foreign exchange
-
-
-
-
-
(66)
-
54
Total increase/(decrease) in financial assets
(760)
(760)
760 760
-
(66)
-
54
This analysis assumes all other variables are constant.
(a) Market risk (continued)
79
