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33. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT continued
Carrying amount Fair value
2006 2005 2006 2005
£m £m £m £m
Non-derivatives:
Financial liabilities:
Listed bonds, debentures and notes 7,140 10,481 7,946 11,793
Finance leases 845 1,100 885 1,108
Other loans and borrowings 1,950 424 1,976 452
Derivatives:
a
Current and non current assets 88 161 88 197
Current and non current liabilities 1,152 847 1,152 1,692
aThe net fair values of derivatives under previously reported UK GAAP amounted to £1,435 million in the 2005 financial year, which compares to £1,495 million reported in the table above (being
£197 million assets less £1,692 million liabilities). Under UK GAAP, the fair value excluded interest accruals which were carrying amounts reported within accrued income and accrued expenses.
Financial liabilities
The following tables set out the exposure of financial liabilities to market pricing, interest cash flow risk and currency risk. The
maturity profile of financial liabilities reflects the contractual repricing dates.
2006
Listed
bonds,
debentures
and notes
Effect of
hedging
and
interest
a
Adjusted
listed
bonds,
debentures
and notes
Finance
leases
Effect of
hedging
and
interest
a
Adjusted
finance
leases
Other
loans and
borrowings
Effect of
hedging
and
interest
a
Adjusted
other loans
and
borrowings
Current
and non-
current
trade and
other
payables
b
Current
and non-
current
provisions
c
£m £m £m £m £m £m £m £m £m £m £m
Fixed rate interest
Pound sterling 2,022 4,077 6,099 108 – 108 275 429 704 ––
Euro 790 (790) ––––371 (371) –––
US dollar 4,037 (4,037) ––––66 (66) –––
Total fixed rate interest financial
liabilities 6,849 (750) 6,099 108 – 108 712 (8) 704 ––
Floating rate interest
Pound sterling 291 691 982 568 (9) 559 1,238 (3) 1,235 ––
Euro –––169 – 169 –––––
Total floating rate interest financial
liabilities 291 691 982 737 (9) 728 1,238 (3) 1,235 ––
Total interest bearing financial
liabilities 7,140 (59) 7,081 845 (9) 836 1,950 (11) 1,939 ––
Non-interest bearing financial liabilities
Pound sterling –––––––––5,056 298
Euro –––––––––923 –
US dollar –––––––––402 –
Other –––––––––82 –
Total 7,140 (59) 7,081 845 (9) 836 1,950 (11) 1,939 6,463 298
Maturity profile of interest bearing financial liabilities based on contractual repricing dates
Less than one year 700 682 1,382 737 (9) 728 1,810 (11) 1,799
Between one and two years 624 (624) –––––––
Between two and three years ––––––140 – 140
Between three and four years 120 (120) –––––––
Between four and five years 2,503 7 2,510 ––––––
Greater than five years 3,193 (4) 3,189 108 – 108 –––
Total interest bearing financial
liabilities 7,140 (59) 7,081 845 (9) 836 1,950 (11) 1,939
Weighted average effective fixed interest rates
%%%%%%
Pound sterling 7.3 8.8 10.4 10.4 9.1 6.4
Euro 7.6 –– –2.6 –
US dollar 8.8 –– –4.7 –
aAdjustment for hedging and interest reflects the effect of currency derivatives; reclassifies the carrying amount to reflect interest derivatives; and excludes interest and fair value adjustments for
hedged risk recognised in carrying amounts.
bThe carrying amount excludes £1,120 million of current and £40 million of non-current trade and other payables which relate to non-financial liabilities and includes current tax liabilities.
cThe carrying amount excludes £9 million of current and £24 million of non-current provisions which relate to non-financial liabilities.
BT Group plc Annual Report and Form 20-F 2006 Notes to the consolidated financial statements108