Qantas 2007 Annual Report Download - page 126

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124 Qantas |Annual Report 2007
(F) Net fair value
Recognised financial assets and liabilities
The net fair value of cash, cash equivalents and non-interest-bearing financial assets and liabilities approximates their carrying value due to their short
maturity. The net fair value of other financial assets and liabilities is determined by valuing them at the present value of future contracted cash flows.
Cash flows are discounted using standard valuation techniques at the applicable market yield, having regard to the timing of the cash flows.
In the year ended 30 June 2006, the convertible loan notes issued by Air New Zealand were convertible to a 4.40 per cent equity stake. The net fair value
of the convertible loan notes was determined by reference to the prevailing market price of Air New Zealand shares at balance date. This investment was
disposed during the year ended 30 June 2007.
The net fair value of forward foreign exchange and fuel contracts is determined as the unrealised gain/loss at balance date by reference to market
exchange rates and fuel prices. The net fair value of interest rate swaps is determined as the present value of future contracted cash flows. Cash flows are
discounted using standard valuation techniques at the applicable market yield, having regard to the timing of the cash flows. The net fair value of options
is determined using standard valuation techniques.
Other financial assets and liabilities represent the fair value of derivative financial instruments recognised on Balance Sheet in accordance with AASB 139.
Notes
Qantas Group
Carrying Amount
Qantas Group
Net Fair Value
Recognised financial assets and liabilities 2007
$M
2006
$M
2007
$M
2006
$M
Financial assets
Cash and cash equivalents 6 3,362.9 2,902.0 3,389.1 2,920.5
Trade debtors 71,030.8 969.9 1,030.8 969.9
Aircraft security deposits 7 124.4 129.6 125.8 132.6
Sundry debtors 7 452.1 224.7 452.1 224.7
Loans receivable 7 142.2 142.1 142.2 142.1
Other financial assets 1,142.5 1,243.5 1,142.5 1,243.5
Unlisted investment in other corporations 10 3.1 53.7 3.1 53.7
6,258.0 5,665.5 6,285.6 5,687.0
Financial liabilities
Trade creditors 14 674.6 596.7 674.6 596.7
Other creditors and accruals 14 1,331.1 1,388.6 1,331.2 1,388.6
Bank loans – secured 15 1,976.5 2,302.3 2,052.6 2,396.2
Bank loans – unsecured 15 627.7 627.0 657.8 650.1
Other loans – unsecured 15 1,411.9 1,603.1 1,480.4 1,638.7
Other financial liabilities 1,151.5 491.4 1,151.5 491.4
Lease and hire purchase liabilities 15 1,058.5 1,243.2 1,035.7 1,237.7
8,231.8 8,252.3 8,383.8 8,399.4
Net financial liabilities 1,973.8 2,586.8 2,098.2 2,712.4
28. Financial Instruments continued
Notes to the Financial Statements
for the year ended 30 June 2007