Qantas 2008 Annual Report Download - page 138
Download and view the complete annual report
Please find page 138 of the 2008 Qantas 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.-
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
 |
 |
136 Qantas Annual Report 2008
Notes to the Financial Statements
for the year ended 30 June 2008
A fi nancial instrument is any contract that gives rise to both a fi nancial asset of one entity and a fi nancial liability or equity instrument of another
entity. The Qantas Group is subject to liquidity, interest rate, foreign exchange, fuel price and credit risks. These risks are an inherent part of the
operations of an international airline. The Qantas Group manages these risk exposures using various fi nancial instruments, using a set of policies
approved by the Board. Qantas Group policy is not to enter, issue or hold derivative fi nancial instruments for speculative trading purposes.
The Qantas Group uses different methods to assess and manage different types of risk to which it is exposed. These methods include sensitivity
analysis in the case of interest rate, foreign exchange and other price risks, and ageing analysis and sensitivity analysis for liquidity risk
and credit risk.
(A) Liquidity risk
Liquidity risk is the risk that an entity will encounter diffi culty in meeting obligations associated with fi nancial liabilities. The Qantas Group
manages liquidity risk by targeting a minimum liquidity level, ensuring long-term commitments are managed with respect to forecast available
cash infl ow, maintaining access to a variety of additional funding sources including commercial paper and standby facilities and managing
maturity profi les.
The following tables summarise the contractual timing of cash fl ows, including interest payments, of fi nancial liabilities and derivative instruments,
as at 30 June 2008 and 30 June 2007:
Financial liabilities Qantas Group
2008
Less than
1 Year
$M
1 to 5 Years
$M
More than
5 Years
$M
Total
$M
Trade payables 669.8 – – 669.8
Bank loans – secured1308.1 1,472.0 233.3 2,013.4
Bank loans – unsecured151.0 706.2 – 757.2
Other loans – unsecured1302.7 702.7 567.3 1,572.7
Lease and hire purchase liabilities176.5 449.2 161.3 687.0
Derivative – infl ows (551.9) (1,893.5) (665.7) (3,111.1)
Derivative – outfl ows 1,451.8 2,651.0 890.7 4,993.5
Total financial liabilities 2,308.0 4,087.6 1,186.9 7,582.5
Recognised fi nancial liability carrying values are shown pre-hedging.
2007
Trade payables 674.6 – – 674.6
Bank loans – secured1328.6 1,596.4 539.5 2,464.5
Bank loans – unsecured150.9 757.2 – 808.1
Other loans – unsecured1188.2 1,137.4 701.0 2,026.6
Lease and hire purchase liabilities1113.1 459.2 227.0 79 9. 3
Derivative – infl ows (550.2) (2,405.2) (994.8) (3,950.2)
Derivative – outfl ows 610.6 3,169.5 1,146.5 4,926.6
Total financial liabilities 1,415.8 4,714.5 1,619.2 7,749.5
Recognised fi nancial liability carrying values are shown pre-hedging.
1
1
33. Financial Risk Management
For personal use only