BT 1999 Annual Report Download - page 93

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92
33. Financial instruments and risk management (continued)
The following information is provided in accordance with the requirements of FRS13 – “Derivatives and other financial instruments:
disclosures”. As permitted by the FRS, comparative figures are not provided since this is the first accounting period in which the
FRS has come into effect. Except for disclosures under currency exposures below, the financial information excludes all of the
group’s short-term debtors and creditors.
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 1999 was:
Financial
Fixed Floating liabilities
rate rate on which
financial financial no interest
liabilities liabilities is paid Total
Currency: £m £m £m £m
))))))))))!!!!0111!!!0111!!!0111!!!0111
Sterling 2,395 1,592 – 3,987
US dollar 1,662 (1,654) – 8
Euro 303 2 24 329
Other – 9 – 9
00000000001!!!0111!!!0111!!!0111!!!0111
Total 4,360 (51) 24 4,333
00000000001!!!0111!!!0111!!!0111!!!0111
For the fixed rate financial liabilities, the average interest rates and the average periods for which the rates are fixed are:
Weighted
Weighted average
average period for
interest which rate
rate is fixed
Currency: % Years
))))))))))!!!!)))!!0111!!!0111
Sterling 9.5 9
US dollar 7.2 5
Euro 5.6 8
0000000000111101111110111!!!0111!!!0111
Total 8.4 7
0000000000111101111110111!!!0111!!!0111
The floating rate financial liabilities bear interest at rates fixed in advance for periods ranging from one day to six months by
reference to LIBOR. The financial liabilities on which no interest is paid are due to mature within two months of the balance
sheet date.
The maturity profile of financial liabilities is as given in note 22.
Financial assets
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 assets at 31 March 1999 was:
Fixed Floating
rate rate
financial financial
assets assets Total
Currency: £m £m £m
))))))))))!!!!)!!!!!0111!!!0111!!!0111
Sterling 273 2,651 2,924
US dollar – 369 369
Euro – 57 57
Other – 30 30
000000000011110111!!!0111!!!0111!!!0111
Total 273 3,107 3,380
000000000011110111!!!0111!!!0111!!!0111
The sterling fixed rate financial assets yield interest at a weighted average of 5.5% for a weighted average period of 15 months.
The floating rate financial assets bear interest at rates fixed in advance for periods up to one year by reference to LIBOR.
NOTES TO THE FINANCIAL STATEMENTS