Telstra 2012 Annual Report Download - page 152

Telstra Corporation Limited and controlled entities
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Notes to the Financial Statements (continued)
(a) Capital management (continued)
Gearing and net debt (continued)
Net debt included in Table A is based on the carrying values of our
financial instruments which are provided in Table C in the following
section (b). For interest bearing financial instruments we adopt a
‘clean price’ whereby the reported balance of our derivative
instruments and borrowings excludes accrued interest. Accrued
interest is recorded in current ‘trade and other receivables’ and
current ‘trade and other payables’ in the statement of financial
position.
Our borrowings are unsecured, except for finance leases which are
secured, as the rights to the leased asset transfer to the lessor in the
event of a default by us. We have no assets pledged as security for
our borrowings. All our borrowings are interest bearing, except for
some loans from wholly owned controlled entities. Details of
interest rates and maturity profiles are included in note 18.
We are not subject to any externally imposed capital requirements.
(i) Offshore loans
Offshore loans comprise debt raised overseas. Our policy is to
swap foreign currency borrowings into Australian dollars, except for
a small proportion of foreign currency borrowings/cross currency
swaps used to hedge translation foreign exchange risk associated
with our offshore investments, and some cash balances/finance
leases held in foreign currencies by our foreign controlled entities.
The carrying amounts of offshore loans are denominated in the
following currencies.
Refer to Table E for details on debt issuance and maturities.
(ii) Telstra bonds and domestic loans
Telstra bonds currently on issue total $236 million and relate to
wholesale investors and mature up until the year 2020. Domestic
borrowings as at 30 June 2012 total $3,292 million with various
maturity dates up until the year 2020. Refer to Table E for details on
debt issuance and maturities.
17. Capital management and financial instruments (continued)
Table B Telstra Group
As at 30 June
2012 2011
$m $m
Australian dollar . . . . . . . . . . . . . 190 249
Euro . . . . . . . . . . . . . . . . . . . 7,193 5,242
United States dollar. . . . . . . . . . . . 1,701 2,280
British pounds sterling . . . . . . . . . . 306 299
Japanese yen . . . . . . . . . . . . . . 595 558
New Zealand dollar. . . . . . . . . . . . 198 272
Swiss francs . . . . . . . . . . . . . . . 804 627
Hong Kong dollar. . . . . . . . . . . . . 45 40
Indian rupee . . . . . . . . . . . . . . . 2-
11,034 9,567