Telstra 2009 Annual Report Download - page 166

Telstra Corporation Limited and controlled entities
151
Notes to the Financial Statements (continued)
(a) Risks and mitigation (continued)
(iv) Sensitivity analysis - foreign currency risk (continued)
The following sensitivity analysis is based on our foreign currency risk
exposures comprising the revaluation impact on our derivatives and
borrowings and net foreign investments from a 10% adverse/
favourable movement in foreign exchange rates based on our
balances as at balance date. At 30 June, had the Australian dollar
against all applicable currencies moved as illustrated in Table C and
Table D below, with all other variables held constant and taking into
account identified underlying exposures and related hedges, profit
and equity after tax would have been affected as follows:
(i) There was no significant exposure in fiscal 2008.
18. Financial risk management (continued)
TABLE C Telstra Group
10% adverse movement 10% favourable movement
Net profit
Equity (foreign
currency
translation
reserve)
Equity (cash
flow hedging
reserve) Net profit
Equity (foreign
currency
translation
reserve
Equity (cash
flow hedging
reserve)
Year ended 30
June As at 30 June As at 30 June
Year ended 30
June As at 30 June As at 30 June
Gain/(loss) Gain/(loss) Gain/(loss) Gain/(loss) Gain/(loss) Gain/(loss)
2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008
$m $m $m $m $m $m $m $m $m $m $m $m
Revaluation of derivatives and
borrowings - de-designated
from fair value hedges or not
in a hedge relationship . . . . (6) (9) ----78----
Revaluation of derivatives and
underlying exposure - cash
flow hedges of forecast
transactions (i). . . . . . . . . . (10) -----7-----
Revaluation of derivatives -
cash flow hedges of offshore
loans . . . . . . . . . . . . . . . . ----(9) (18) ----11 15
Net foreign investments . . . . --(156) (123) ----190 151 -
TABLE D Telstra Entity
10% adverse movement 10% favourable movement
Net profit
Equity (cash flow
hedging reserve) Net profit
Equity (cash flow
hedging reserve)
Year ended 30 June As at 30 June Year ended 30 June As at 30 June
Gain/(loss) Gain/(loss) Gain/(loss) Gain/(loss)
2009 2008 2009 2008 2009 2008 2009 2008
$m $m $m $m $m $m $m $m
Revaluation of derivatives and borrowings - de-
designated from fair value hedges or not in a hedge
relationship. . . . . . . . . . . . . . . . . . . . . . . . . (6) (9) --78--
Revaluation of derivatives and underlying exposure
- cash flow hedges of forecast transactions (i). . . . (10) ---7---
Revaluation of derivatives - cash flow hedges of
offshore loans . . . . . . . . . . . . . . . . . . . . . . . --(9) (18) --11 15
Revaluation of derivatives and borrowings hedging
net foreign investments . . . . . . . . . . . . . . . . . (74) (80) --90 66 --