Telstra 2009 Annual Report Download - page 178

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Telstra Corporation Limited and controlled entities
163
Notes to the Financial Statements (continued)
(c) Hedge Relationships (continued)
Table L describes each of our hedge relationships, where forward
foreign currency exchange contracts are used as the hedging
instruments. These relationships comprise effective economic
relationships based on contractual face value amounts and cash
flows, including relationships that are not in a designated hedge
relationship for hedge accounting purposes. These hedging
instruments are used to hedge our promissory notes, forecast
transactions denominated in foreign currency, foreign currency trade
and other creditors.
Outlined in the following table is the pre hedge underlying exposure,
each leg of the forward foreign currency contract and the end post
hedge position. This post hedge position represents our net final
currency positions and is represented in our residual economic
position as described in note 17 Table F.
18. Financial risk management (continued)
Table L Telstra Group and Telstra Entity
Derivative hedging instruments
- forward foreign currency contracts
Face value Notional value
Average exchange
rate
Pre hedge underlying
exposure (payable)
Forward contract
receive
Forward contract pay
- final leg
Native Currency Native currency Australian dollars
2009 2008 2009 2008 2009 2008 2009 2008
$m $m $m $m $m $m
Forward contracts hedging interest bearing
debt
Promissory notes
United States dollar - contractual maturity 0-3
months (2008: 0-3 months) . . . . . . . . . . -(900) -900 -(962) -0.93540
New Zealand dollars - contractual maturity 3-12
months (2008: nil) . . . . . . . . . . . . . . . . (20) -20 -(18) -1.13310 -
Loans from wholly owned controlled entities
British pounds sterling - contractual maturity 0-
3 months (2008: 3-12 months) . . . . . . . . . (3) (4) 34(6) (8) 0.46806 0.47876
New Zealand dollars - contractual maturity 0-3
months (2008: 3-12 months) . . . . . . . . . . (253) (204) 253 204 (200) (172) 1.26368 1.22454
United States dollars - contractual maturity 0- 3
months (2008: 3-12 months) . . . . . . . . . . (22) (13) 22 13 (28) (13) 0.78608 0.93830
Forward contracts hedging non-financial items
Forecast transactions
United States dollar - contractual maturity 0-12
months (2008: 0-3 months) . . . . . . . . . . . (495) (196) 495 196 (709) (227) 0.69761 0.93078
Euro - contractual maturity 0 - 12 months (2008:
nil) . . . . . . . . . . . . . . . . . . . . . . . . . . (2) -2-(4) -0.55541 -
Hong Kong dollar - contractual maturity 0-3
months (2008: nil) (3) -3-(1) -5.98057 -
Provisions and trade creditors - non interest
bearing
United states dollars- contractual maturity 0-12
months (2008: 3-12 months) . . . . . . . . . . (63) (31) 63 31 (79) (18) 0.79123 0.94311
Euro- contractual maturity 0-3 months (2008:
nil) (2) -2-(4) -0.57435 -
(1,049) (1,400)