Qantas 2013 Annual Report Download - page 138

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136
To the extent that the hedges were assessed as highly effective, the effective portion of changes in fair value is included in the
hedge reserve. For further information on accounting for derivative nancial instruments as cash ow hedges, refer to Note 1(F).
The periods in which the related cash ows are expected to occur are summarised below:
Qantas Group
2013
$M Less than
1 Year
1 to 5
Years
More than
5 Years Total
Contracts to hedge
Future foreign currency receipts and payments 132 51 – 183
Future aviation fuel payments (1) – – (1)
Future interest payments (8) (29) (6) (43)
Future capital expenditure payments 23 14 – 37
146 36 (6) 176
Tax effect (53)
Total net gain included within hedge reserve 123
2012
$M
Contracts to hedge
Future foreign currency receipts and payments 45 95 – 140
Future aviation fuel payments (11) – – (11)
Future interest payments (26) (24) – (50)
Future capital expenditure payments (19) (1) – (20)
(11) 70 – 59
Tax effect (18)
Total net gain included within hedge reserve 41
C DERIVATIVE INEFFECTIVENESS AND NONDESIGNATED DERIVATIVES IN THE CONSOLIDATED INCOME STATEMENT
Amounts shown below reect ineffectiveness on changes in the fair value of any derivative instrument in a cash ow hedge,
or part of a derivative instrument that does not qualify for hedge accounting. AASB 139 Financial Instruments: Recognition and
Measurement (AASB 139) permits reporting entities to separate the intrinsic value and time value of an option. AASB 139 allows for
the intrinsic value of an option to be designated as part of any hedging relationship. As a result, the time value component is not
hedge accounted and changes in fair values are recognised immediately in the Consolidated Income Statement for the nancial
period as it does not form part of a hedging relationship.
Qantas Group
2013
$M
2012
$M
INEFFECTIVE AND NONDESIGNATED DERIVATIVES
Ineffective portion of cash ow hedges (5) 17
Components of derivatives not hedge accounted (including time value of options) (71) (182)
Ineffective and non-designated derivatives expense (76) (165)
Notes to the Financial Statements continued
FOR THE YEAR ENDED 30 JUNE 2013
26. Derivatives and Hedging Instruments continued