Peachtree 2015 Annual Report Download - page 144

Download and view the complete annual report

Please find page 144 of the 2015 Peachtree annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 168

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168

The Sage Group plc | Annual Report & Accounts 2015
142
Net debt and capital structure continued
13 Financial instruments
This note shows details of the fair value and carrying value of short and long term borrowings, trade and other payables, trade and
other receivables, short-term bank deposits, cash at bank and in hand and other financial liabilities. These items are all classified as
“financial instruments” under accounting standards. Fair value is the amount for which an asset could be exchanged, or a liability settled,
between knowledgeable willing parties in an arm’s length transaction.
In order to assist users of these financial statements in making an assessment of any risks relating to financial instruments, this
note also shows the ageing of these items and analyses their sensitivity to changes in key inputs, such as interest rates and foreign
exchange rates. Credit risk is further disclosed in the Directors’ Report.
Accounting policy
Financial assets and liabilities are recognised in the Group’s balance sheet when the Group becomes party to the contractual provision
of the instrument.
13.1 Fair values of financial instruments
For the following financial assets and liabilities: trade and other payables excluding tax and social security, trade and other receivables
excluding prepayments and accrued income, short-term bank deposits, cash at bank and in hand and other financial liabilities, the carrying
amount approximates the fair value of the instrument with the exception of borrowings due to these bearing interest at fixed rates which are
currently higher than floating rates.
The fair value of borrowings is determined by reference to interest rate movements on the US $ private placement market and therefore can
be considered as a level 2 fair value as defined within IFRS 13.
2015 2014
Note Book value
£m
Fair value
£m
Book value
£m Fair value
£m
Long term-borrowing 12.4 (571.4) (572.8) (415.8) (418.0)
Short term borrowing 12.4 (33.6) (34.1) (125.4) (125.4)
13.2 Maturity of financial liabilities
The maturity profile of the undiscounted contractual amount of the Group’s financial liabilities at 30 September was as follows:
2015
Borrowings
£m
Trade and
other payables
excluding other
tax and social
security
£m
Other
financial
liabilities
£m
Total
£m
In less than one year 33.6 269.4 – 303.0
In more than one year but not more than two years 33.5 – – 33.5
In more than two years but not more than five years 213.7 – – 213.7
In more than five years 327.1 – – 327.1
607.9 269.4 – 877.3
2014
Borrowings
£m
Trade and
other payables
excluding other
tax and social
security
£m
Other
financial
liabilities
£m Total
£m
In less than one year 125.4 226.6 60.1 412.1
In more than one year but not more than two years 30.8 – – 30.8
In more than two years but not more than five years 172.4 – – 172.4
In more than five years 216.1 – – 216.1
544.7 226.6 60.1 831.4
The maturity profile of provisions is disclosed in Note 9.