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79 ANNUAL REPORT 2010
for the year ended 30 June 2010
Notes to the Financial Statements continued
The following section summarises derivative  nancial instruments in the Consolidated Balance Sheet, Consolidated Statement of Changes in Equity,
Consolidated Statement of Comprehensive Income and Consolidated Income Statement.
(A) OTHER FINANCIAL ASSETS AND LIABILITIES
Qantas Group
2010
$M
2009
$M
NET OTHER FINANCIAL LIABILITIES
Derivatives
Designated as cash  ow hedges (54) (43)
Designated as fair value hedges (153) (101)
De-designated derivatives (23) (134)
Not qualifying for hedge accounting 92 194
Net derivative liabilities (138) (84)
Other  nancial assets –80
Net other  nancial liabilities (138) (4)
Other  nancial assets are measured at amortised cost. These amounts are shown net of impairment losses of nil (2009: $181 million).
Recognised on the Consolidated Balance Sheet
Other  nancial assets – current 233 561
Other  nancial assets – non-current 102 344
Other  nancial liabilities – current (242) (641)
Other  nancial liabilities – non-current (231) (268)
Net other  nancial liabilities (138) (4)
(B) HEDGE RESERVE
At 30 June 2010, the Qantas Group held various types of derivative  nancial instruments that were designated as cash  ow hedges of future forecast
transactions. These were hedging of:
—Future foreign currency revenue receipts and operational payments by future debt repayments in foreign currency and exchange derivative
contracts (forwards, swaps or options)
—Future aviation fuel purchases by crude, gasoil and jet kerosene derivative contracts (forwards, swaps or options)
—Future interest payments by interest rate derivative contracts (forwards, swaps or options)
—Future capital expenditure payments by foreign exchange derivative contracts (forwards or options)
To the extent that the hedges were assessed as highly effective, the effective portion of changes in fair value are included in the hedge reserve.
For further information on accounting for derivative  nancial instruments as cash  ow hedges, refer to Note 1(F). The periods in which the related
cash  ows are expected to occur are summarised below:
Qantas Group
2010
$M
Less than
1 Year 1 to 5 Years
More than
5 Years Total
Contracts to hedge
Future foreign currency receipts and payments 44 181 5 230
Future aviation fuel payments (3) 1 – (2)
Future interest payments (3) (31) (15) (49)
Future capital expenditure payments (60) 3 – (57)
(22) 154 (10) 122
Tax effect (37)
Total net gain included within hedge reserve 85
2009
$M
Contracts to hedge
Future foreign currency receipts and payments 117 111 37 265
Future aviation fuel payments (286) 12 – (274)
Future interest payments (5) (28) (1) (34)
Future capital expenditure payments (8) 10 – 2
(182) 105 36 (41)
Tax effect 12
Total net loss included within hedge reserve (29)
25. Derivatives and Hedging Instruments