BT 2011 Annual Report Download - page 142

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139BT GROUP PLC ANNUAL REPORT & FORM 20-F 2011
FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
29. Financial instruments and risk management
The group issues or holds financial instruments mainly to finance its operations; to finance corporate transactions such as dividends, share
buy backs and acquisitions; for the temporary investment of short-term funds; and to manage the currency and interest rate risks arising
from its operations and from its sources of finance. In addition, various financial instruments, for example trade receivables and trade
payables, arise directly from the group’s operations.
Financial instruments by category
The accounting classification of each class of the group’s financial assets and liabilities is set out in the tables below.
Fair value
through Derivatives
Financial assets Loans and profit and used for Available-
receivables loss hedging for-sale Total
At 31 March 2011 Notes £m £m £m £m £m
Investments 15 7 11 – 62 80
Derivative financial instruments 21 – 103 630 – 733
Trade and other receivablesa19 2,558–––2,558
Cash and cash equivalents 16 351–––351
Total financial assets 2,916 114 630 62 3,722
Fair value
through Derivatives
Loans and profit and used for Available-
receivables loss hedging for-sale Total
At 31 March 2010 Notes £m £m £m £m £m
Investments 15 180 – – 290 470
Derivative financial instruments 21 – 106 1,594 – 1,700
Trade and other receivablesa19 2,947–––2,947
Cash and cash equivalents 16 1,452–––1,452
Total financial assets 4,579 106 1,594 290 6,569
Fair value
through Derivatives
Financial liabilities profit and used for Amortised
loss hedging cost Total
At 31 March 2011 Notes £m £m £m £m
Loans and other borrowings 20 – – 9,856 9,856
Derivative financial instruments 21 267 302 – 569
Trade and other payablesb22 – – 4,285 4,285
Provisionsc25 – – 280 280
Total financial liabilities 267 302 14,421 14,990
Fair value
through Derivatives
profit and used for Amortised
loss hedging cost Total
At 31 March 2010 Notes £m £m £m £m
Loans and other borrowings 20 – – 12,791 12,791
Derivative financial instruments 21 298 401 – 699
Trade and other payablesb22 – – 4,672 4,672
Provisionsc25 – – 255 255
Total financial liabilities 298 401 17,718 18,417
aExcludes prepayments of £570m (2010: £549m), other receivables £204m (2010: £200m) and other non-current assets of £286m (2010: £336m).
bExcludes other taxation and social security of £485m (2010: £516m), deferred income £1,344m (2010: £1,343m) and other non-current payables of £831m (2010: £804m).
cExcludes provisions of £676m (2010: £586m).
FINANCIAL STATEMENTS OVERVIEWBUSINESS REVIEWFINANCIAL REVIEWREPORT OF THE DIRECTORSFINANCIAL STATEMENTSADDITIONAL INFORMATION