Note 38. Financial instruments
a) Credit risk
The credit risk on financial assets of the consolidated entity which have
been recognised on the balance sheet is generally the carrying
amount, net of any provision for doubtful debts.
b) Interest rate risk
The consolidated entity’s exposure to interest rate risk and the effective
weighted average interest rate by maturity periods for each class
of financial assets and liabilities is as follows:
30 June 2007 Note Fixed interest maturing in
Floating
interest
$’000
1 Year
or less
$’000
1 to 5
years
$’000
Over 5
years
$’000
Non-interest
bearing
$’000
Total
$’000
Financial assets
Cash and deposits
Receivables – current
7
8
23,361
–
–
–
–
–
–
–
–
53,512
23,361
53,512
23,361 – – – 53,512 76,873
Weighted average interest rate 6.11%
Financial liabilities
Trade and other creditors
Bank loans – non-current
Other loans – non-current
17
21
21
–
71,364
–
–
–
–
–
–
–
–
–
–
53,125
–
4
53,125
71,364
4
71,364 – – – 53,129 124,493
Weighted average interest rate 7.50%
Net financial assets/(liabilities) (48,003) – – – 383 (47,620)
30 June 2006 Note Fixed interest maturing in
Floating
interest
$’000
1 Year
or less
$’000
1 to 5
years
$’000
Over 5
years
$’000
Non-interest
bearing
$’000
Total
$’000
Financial assets
Cash and deposits
Receivables – current
7
8
16,869
–
–
–
–
–
–
–
100
54,784
16,969
54,784
16,869 – – – 54,884 71,753
Weighted average interest rate
Financial liabilities
Trade and other creditors
Bank overdraft
Bank loans – current
Other loans – non-current
17
18
21
21
5.68%
–
26
1,640
1,465
–
–
40,500
–
–
–
–
–
–
–
–
–
54,538
–
–
4
54,538
26
42,140
1,469
3,131 40,500 – – 54,542 98,173
Weighted average interest rate
Net financial assets/(liabilities)
7.89%
13,738
6.24%
(40,500) – – 342 (26,420)
c) Net fair values of assets and liabilities
The net fair value of the consolidated entity’s financial assets and liabilities
would not vary significantly from the value as stated in the
financial statements.
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