BT 2012 Annual Report Download - page 155

152 Financial statements
Notes to the consolidated financial statements
26. Financial instruments and risk management continued
Fair value Designated Designated
through in a in a Total
profit cash flow fair value Amortised carrying Fair
Financial liabilities and loss hedge hedge cost value value
At 31 March 2012 Notes £m £m £m £m £m £m
Non-derivative financial liabilities
Loans and other borrowings 24 – – 1,265 1,265 1,265
Listed bonds 24 – 6,889 686 1,361 8,936 10,594
Finance leases 24–––285285328
Trade and other payablesa18–––4,180 4,180 4,180
Provisionsb19–––260260260
Total non-derivative financial liabilities – 6,889 686 7,351 14,926 16,627
Derivative financial liabilitiesc
Cross currency swaps – 59 – – 59 59
Interest rate swaps 322 451 – – 773 773
Forward foreign exchange contracts 6 8 – – 14 14
Total derivative financial liabilities 328 518 – – 846 846
Total financial liabilities 328 7,407 686 7,351 15,772 17,473
Fair value Designated Designated
through in a in a Total
profit cash flow fair value Amortised carrying Fair
and loss hedge hedge cost value value
At 31 March 2011 Notes £m £m £m £m £m £m
Non-derivative financial liabilities
Loans and other borrowings 24–––534534562
Listed bonds 24 – 7,070 605 1,353 9,028 10,274
Finance leases 24–––294294339
Trade and other payablesa18–––4,285 4,285 4,285
Provisionsb19–––280280280
Total non-derivative financial liabilities – 7,070 605 6,746 14,421 15,740
Derivative financial liabilities
Cross currency swaps – 29 – – 29 29
Interest rate swaps 267 265 2 – 534 534
Forward foreign exchange contracts – 6 – – 6 6
Total derivative financial liabilitiesc267 300 2 – 569 569
Total financial liabilities 267 7,370 607 6,746 14,990 16,309
aExcludes other taxation and social security of £487m (2011: £485m), deferred income £1,295m (2011: £1,344m) and other non-current payables of £875m (2011: £831m).
bExcludes provisions of £597m (2011: £676m).
cCurrent derivative financial liabilities of £89m (2011: £62m) consists of cross-currency swaps of £18m (2011: £nil), interest rate swaps of £57m (2011: £56m) and forward foreign exchange contracts
of £14m (2011: £6m). Non-current derivative financial liabilities of £757m (2011: £507m) consists of cross-currency swaps of £41m (2011: £29m) and interest rate swaps of £716m (2011: £478m).
The carrying amounts are included in the group balance sheet under the indicated headings. The methods and assumptions used to estimate the
fair values of financial assets and liabilities are as follows:
•the fair values of listed investments were estimated using quoted market prices for those investments at the balance sheet date
•the carrying amount of short-term deposits and investments equates to fair value due to the short maturity of the investments held
•the carrying amount of trade receivables and payables approximated to fair values due to the short maturity of amounts payable and receivable
•the fair value of the group’s bonds 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 value of future cash flows using approximate discount rates
in effect at the balance sheet date where market prices of similar issues did not exist
•the fair value of the group’s outstanding swaps and foreign exchange contracts were estimated using discounted cash flow models and market
rates of interest and foreign exchange at the balance sheet date.
Overview
BusinessStrategy
Performance
Governance
Financial statements
Additional information Overview
BusinessStrategy
Performance
Governance
Financial statements
Additional information