BT 2009 Annual Report Download - page 137

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ADDITIONAL INFORMATION FINANCIAL STATEMENTS REPORT OF THE DIRECTORS BUSINESS AND FINANCIAL REVIEWS OVERVIEW
FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
135BT GROUP PLC ANNUAL REPORT & FORM 20-F
FINANCIAL STATEMENTS
33. Financial instruments and risk management continued
Fair value of financial instruments
The following table discloses the carrying amounts and fair values of all of the group’s financial instruments which are not carried at an
amount which approximates to their fair value on the balance sheet at 31 March 2009 and 2008. The carrying amounts are included in the
group balance sheet under the indicated headings. The fair value of the financial instruments is the amount at which the instruments could
be exchanged in a current transaction between willing parties, other than in a forced liquidation or sale. The fair values of listed
investments were estimated based on quoted market prices for those investments. The carrying amount of the short-term deposits and
investments approximated to their fair values due to the short maturity of the investments held. The carrying amount of trade receivables
and payables approximated to their fair values due to the short maturity of the amounts receivable and payable. The fair value of the
group’s bonds, debentures, notes, finance leases and other long-term borrowings has been estimated on the basis of quoted market prices
for the same or similar issues with the same maturities where they existed, and on calculations of the present value of future cash flows
using the appropriate discount rates in effect at the balance sheet dates, where market prices of similar issues did not exist. The fair value
of the group’s outstanding swaps and foreign exchange contracts were the estimated amounts, calculated using discounted cash flow
models taking into account market rates of interest and foreign exchange at the balance sheet date.
Carrying amount Fair value
2009 2008 2009 2008
£m £m £m £m
Financial liabilities:
Listed bonds, debentures and notes 12,189 9,298 11,384 9,436
Finance leases 332 320 366 347
Other loans and borrowings 1,386 1,724 1,338 1,690