2009-10 Annual Report - Australia Post
2009-10 Annual Report - Australia Post
2009-10 Annual Report - Australia Post
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notes to And ForminG PArt oF the FinAnCiAl rePort For the year ended 30 June 20<strong>10</strong><br />
29 Financial and capital risk management (continued)<br />
(f) Foreign currency risk management (continued)<br />
Foreign currency sensitivity<br />
the following table details the effect on profit after tax as at 30 June from a 14% (<strong>2009</strong>: 12%) favourable/unfavourable change in the australian dollar<br />
with all other variables held constant. the sensitivity analyses below have been determined based on the exposure to sdr from financial instruments<br />
at the reporting date.<br />
the possible risk of 14% is based on australian Government department of Finance and deregulation guidance.<br />
a positive number indicates an increase in profit after tax, while a negative number indicates a reduction in profit after tax.<br />
impact on profit after tax at reporting date, with all other variables held constant of a:<br />
14% (<strong>2009</strong>: 12%) strengthening of the australian dollar from:<br />
Financial assets<br />
Financial liabilities<br />
14% (<strong>2009</strong>: 12%) weakening of the australian dollar from:<br />
Financial assets<br />
Financial liabilities<br />
impact on equity after tax at reporting date, with all other variables held constant of a:<br />
14% (<strong>2009</strong>: 12%) strengthening of the australian dollar from:<br />
Financial assets<br />
Financial liabilities<br />
14% (<strong>2009</strong>: 12%) weakening of the australian dollar from:<br />
Financial assets<br />
Financial liabilities<br />
88<br />
AustrAliA <strong>Post</strong> AnnuAl rePort <strong>2009</strong>–<strong>10</strong> | Financial and statutory reports<br />
20<strong>10</strong><br />
$m<br />
(14.6)<br />
7.1<br />
consolidated corporation<br />
<strong>2009</strong><br />
$m<br />
(14.4)<br />
9.6<br />
20<strong>10</strong><br />
$m<br />
(14.6)<br />
7.1<br />
<strong>2009</strong><br />
$m<br />
(14.4)<br />
9.6<br />
(7.5) (4.8) (7.5) (4.8)<br />
16.6<br />
(8.1)<br />
16.1<br />
(<strong>10</strong>.8)<br />
16.6<br />
(8.1)<br />
16.1<br />
(<strong>10</strong>.8)<br />
8.5 5.3 8.5 5.3<br />
(0.6)<br />
–<br />
(0.2)<br />
(0.7)<br />
(0.6)<br />
–<br />
(0.2)<br />
(0.7)<br />
(0.6) (0.9) (0.6) (0.9)<br />
0.7<br />
0.1<br />
0.2<br />
0.8<br />
0.7<br />
0.1<br />
0.2<br />
0.8<br />
0.8 1.0 0.8 1.0<br />
the receivables and payables denominated in sdr, on which the sensitivity is shown in the table above, are not necessarily representative of the<br />
corporation and the group’s exposure to currency risk for the years ended 30 June <strong>2009</strong> and 30 June 20<strong>10</strong>. the receivables and payables denominated<br />
in sdr are highly variable in amount and timing, in particular due to the timing of receipts and settlements with overseas postal administrations.<br />
(g) Commodity price risk management<br />
commodity price risk refers to the risk that the fair value or future cashflows of a financial instrument will fluctuate because of changes in commodity<br />
prices. the corporation’s objective on commodity price risk management is to ensure that movements in commodity prices do not adversely affect<br />
operating costs. the corporation and the group are exposed to commodity prices through the use of fuel. the risk is measured by reviewing forecast<br />
commodity exposures monthly and managed by entering into long-term supply contracts and through the use of commodity swap contracts. the<br />
hedging strategy is set annually as part of the planning process and the hedging activities are evaluated monthly.
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