Telstra 2012 Annual Report Download - page 153

Telstra Corporation Limited and controlled entities
123
Notes to the Financial Statements (continued)
(b) Financial instruments
The carrying amounts, fair values and face values of each category
of our financial instruments are shown in Table C. The amounts
disclosed are prior to netting offsetting risk positions of financial
instruments in a hedge relationship.
We also have potential financial liabilities not included in the tables
below which may arise from certain contingencies disclosed in note
23 and note 30.
(i) For financial assets and financial liabilities with a short-term to
maturity, the carrying amount is considered to approximate fair
value.
(ii) These borrowings are in fair value hedges. The carrying amount
of our borrowings in fair value hedges is adjusted for fair value
movements attributable to the hedged risk.
17. Capital management and financial instruments (continued)
Table C Telstra Group
As at 30 June 2012 As at 30 June 2011
Carrying
amount Fair value Face value Carrying
amount Fair value Face value
Receivable/(Payable) Receivable/(Payable)
$m $m $m $m $m $m
Financial instruments included in net debt
Cash at bank and on hand . . . . . . . . . . . . . . . . . 362 362 362 363 363 363
Available for sale - at fair value
Bank deposits, bills of exchange and promissory notes (i). 3,583 3,583 3,634 2,275 2,275 2,304
In designated hedge relationships - at fair value
Net derivative liability - hedging instrument . . . . . . . . (1,381) (1,381) (1,349) (1,551) (1,551) (1,510)
Promissory notes - hedged item (ii) . . . . . . . . . . . . (101) (101) (101) (279) (279) (279)
Offshore loans - hedged item (ii) . . . . . . . . . . . . . . (3,615) (3,615) (3,529) (1,423) (1,423) (1,451)
In designated hedge relationships - at amortised
cost
Offshore loans - hedged item . . . . . . . . . . . . . . . (4,749) (5,211) (4,781) (5,519) (5,675) (5,557)
Telstra bonds and domestic loans - hedged item . . . . . (274) (264) (275) (274) (266) (275)
Promissory notes - hedging instrument . . . . . . . . . . (275) (276) (277) (194) (195) (196)
Offshore loans - hedging instrument . . . . . . . . . . . . (198) (217) (200) (272) (288) (274)
Not in designated hedge relationship - at fair value
Net derivative liability. . . . . . . . . . . . . . . . . . . . (577) (577) (703) (514) (514) (607)
De-designated from hedge relationship - at
amortised cost
Offshore loans . . . . . . . . . . . . . . . . . . . . . . . (1,663) (1,810) (1,731) (1,680) (1,818) (1,772)
Other financial liabilities - at amortised cost
Finance lease payable . . . . . . . . . . . . . . . . . . . (139) (139) (186) (139) (139) (165)
Promissory notes . . . . . . . . . . . . . . . . . . . . . . (187) (188) (189) (35) (35) (35)
Offshore loans . . . . . . . . . . . . . . . . . . . . . . . (809) (835) (810) (673) (714) (675)
Telstra bonds and domestic loans . . . . . . . . . . . . . (3,254) (3,396) (3,272) (3,680) (3,714) (3,699)
Telstra Group net debt . . . . . . . . . . . . . . . . . . (13,277) (14,065) (13,407) (13,595) (13,973) (13,828)
Other financial instruments
Interest bearing financial assets
Finance lease receivable. . . . . . . . . . . . . . . . . . 142 142 160 144 144 159
Amounts owed by jointly controlled and associated entities 443 443 443 ---
Other receivables. . . . . . . . . . . . . . . . . . . . . . 24 24 24 ---
Net interest bearing financial liabilities . . . . . . . . . (12,668) (13,456) (12,780) (13,451) (13,829) (13,669)
Equity investments classified as available-for-sale
Listed and unlisted securities. . . . . . . . . . . . . . . . 19 19 19 111
Loans and receivables at amortised cost
Trade/other receivables and accrued revenue (i) . . . . . 4,555 4,555 4,765 4,297 4,297 4,527
Amounts owed by jointly controlled and associated entities 33 33 38 35 35 40
Financial liabilities at amortised cost
Trade/other creditors and accrued expenses (i) . . . . . . (4,162) (4,162) (4,162) (4,099) (4,099) (4,099)
Deferred consideration for capital expenditure. . . . . . . (143) (143) (205) (171) (171) (239)
Net financial liabilities . . . . . . . . . . . . . . . . . . (12,366) (13,154) (12,325) (13,388) (13,766) (13,439)