2009-10 Annual Report - Australia Post

notes to And ForminG PArt oF the FinAnCiAl rePort For the year ended 30 June 2010
29 Financial and capital risk management (continued)
(c) Categories of financial instruments
Financial assets
loans and receivables (including cash and cash equivalents)
derivative instruments in designated hedge accounting relationships
Financial liabilities
other financial liabilities at amortised cost
other financial liabilities designated in fair value hedge relationships at amortised
cost and adjusted by the gain/loss attributable to interest rate risk
derivative instruments in designated hedge accounting relationships
Financial guarantee contracts
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AustrAliA Post AnnuAl rePort 2009–10 | Financial and statutory reports
2010
$m
1,228.9
5.9
529.9
547.0
11.9
0.0
consolidated corporation
2009
$m
1,285.8
9.8
626.5
541.7
20.1
0.1
2010
$m
1,202.2
5.9
512.0
547.0
11.9
0.0
2009
$m
1,251.4
9.8
(d) net gain or loss on loans and receivables and financial liabilities measured at amortised cost and held-to-maturity investments
the net gain or net loss on the loans and receivables category of financial instruments (including cash and cash equivalents) is determined as interest
revenue, plus or minus foreign exchange gains or losses arising from the revaluation of the financial asset and minus any impairment recognised in
profit or loss as shown below.
interest revenue (refer note 2)
Foreign exchange gain/(loss)
impairment loss (refer note 3)
2010
$m
25.7
(13.6)
(1.5)
606.8
541.7
20.1
0.1
consolidated corporation
2009
$m
34.4
6.2
(0.8)
2010
$m
26.5
(13.6)
(14.6)
net gain/(loss) on loans and receivables 10.6 39.8 (1.7) 23.9
the net gain or net loss on financial liabilities measured at amortised cost is determined as interest expense, plus or minus foreign exchange
gains or losses arising from the revaluation of financial liabilities measured at amortised cost as shown below.
interest expense (refer note 4)
Foreign exchange (gain)/loss
2010
$m
31.7
(9.5)
2009
$m
35.6
6.2
(17.9)
consolidated corporation
2009
$m
34.6
4.7
2010
$m
31.4
(9.5)
net loss on financial liabilities measured at amortised cost 22.2 39.3 21.9 39.0
(e) market risk
the corporation’s and the group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates (refer note 29(f)),
commodity prices (refer note 29(g)) and interest rates (refer note 29(h)). the corporation is a party to derivative financial instruments in the normal
course of business in order to hedge exposure to fluctuations in foreign exchange rates, commodity prices and interest rates. reference should also
be made to note 1(m) relating to derivative financial instruments. at a corporation and group level, market risk exposures are managed through
sensitivity analysis and stress scenario analysis.
2009
$m
34.0
5.0