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33. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT continued
The floating rate financial liabilities bear interest rates fixed in advance for periods ranging from one day to one year by reference
to LIBOR.
Financial assets
The following tables set out the exposure of financial assets to market pricing and interest cash flow risk and currency risk. The
maturity profile of financial assets reflects the contractual repricing dates.
2006
Current
investments
Effect of
hedging
and interest
a
Adjusted
current
investments
Non-current
investments
Cash and
cash
equivalents
Effect of
hedging
and interest
a
Adjusted cash
and cash
equivalents
Trade and
other
receivables
b
£m £m £m £m £m £m £m £m
Fixed rate interest
Pound sterling 3 – 3 – 19 – 19 –
Euro ––––6 – 6 –
Total fixed rate financial assets 3 – 3 – 25 – 25 –
Floating rate interest
Pound sterling 14 342 356 – 1,127 422 1,549 –
Euro ––––215 – 215 –
US dollar 348 (348) ––522 (422) 100 –
Other ––––76 – 76 –
Total floating rate financial assets 362 (6) 356 – 1,940 – 1,940 –
Total interest bearing financial assets 365 (6) 359 – 1,965 – 1,965 –
Non-interest bearing financial assets
Pound sterling –––12 –––1,955
Euro –––1–––647
US dollar –––2–––269
Other –––2–––74
Total 365 (6) 359 17 1,965 – 1,965 2,945
aAdjustment for hedging and interest reflects the effect of currency derivatives; reclassifies the carrying amount to reflect interest derivatives; and excludes interest recognised in carrying amounts.
bThe carrying amount excludes £1,254 million of current trade and other receivables which relate to non-financial assets.
The maturity profile of interest bearing financial assets based on contractual repricing dates is less than one year. The floating rate
financial assets bear interest rate in their respective currencies, fixed in advance for periods ranging from one day to one year by
reference to LIBOR and EURIBOR.
Additional financial instrument disclosures required under UK GAAP for the 2005 financial year
The following information is provided in accordance with the requirements of FRS 13 –‘Derivatives and other financial
instruments: disclosures’. The financial information excludes all of the group’s short-term receivables and payables.
Financial liabilities
After taking into account the various interest rate swaps and forward foreign currency contracts entered into by the group, the
interest rate profile of the group’s financial liabilities at 31 March 2005 was:
2005
Fixed rate
financial liabilities
Floating rate
financial liabilities
Financial liabilities
on which no
interest is paid Total
Currency: £m £m £m £m
Total (Sterling) 7,488 5,101 – 12,589
For the fixed rate financial liabilities, the average interest rates and the average periods for which the rates are fixed are:
2005
Weighted average
interest
rate
Weighted average
period for
which rate
is fixed
Currency: % Years
Sterling 8.8 11
The floating rate financial liabilities bear interest at rates fixed in advance for periods ranging from one day to one year by
reference to LIBOR.
The maturity profile of financial liabilities is as given in note 18.
Notes to the consolidated financial statements BT Group plc Annual Report and Form 20-F 2006 109