2004-05 Annual Report - Australia Post

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
32. PROVISIONS – MOVEMENT SCHEDULE
Consolidated
Leave
$m
Workers’
compensation
$m
FOR THE YEAR ENDED 30 JUNE 2005
Separations &
redundancies
$m
Other
employee
$m
Balance at 1 July 2004 409.2 111.7 27.5 16.7
Amount recognised / (derecognised) during
the year
189.7 38.2 7.6 26.1
Acquisition of subsidiary 1.3 0.0 0.0 0.0
Payments made during the year (157.1) (26.4) (16.6) (18.0)
Balance at 30 June 2005 443.1 123.5 18.5 24.8
Corporation
Balance at 1 July 2004 407.9 111.7 27.4 16.7
Amount recognised / (derecognised)
during the year
188.7 38.1 7.5 25.9
Payments made during the year (156.8) (26.3) (16.5) (18.0)
Balance at 30 June 2005 439.8 123.5 18.4 24.6
33. FINANCIAL INSTRUMENTS
(a) Derivative instruments
The corporation is a party to derivative financial instruments in the normal course of business in order to hedge
exposure to fluctuations in interest rates, foreign exchange rates and commodity prices. Reference should also
be made to note 1(t) relating to derivative financial instruments.
Forward exchange contracts and option contracts
With respect to capital equipment sourced internationally, the corporation has entered into forward exchange
contracts to purchase United States dollars (USD) and Euros (EUR). The contracts are timed to mature when
major shipments of equipment are scheduled for delivery and payment.
With respect to international trading transactions, the corporation has entered into forward exchange contracts
to sell New Zealand dollars (NZD). The contracts are timed to mature when accumulated receipts have reached
a predetermined level.
Exposure to commodity and currency prices arise through the corporation’s use of fuel. The corporation has
entered into option and commodity swap contracts to hedge commodity and foreign exchange exposures
arising from its consumption of fuel. The contracts are timed to mature on a monthly basis.
Trading exposures arise as a result of obligations with overseas postal administrations (refer note 1(t)) and are
invoiced in Special Drawing Rights (SDR) and settled in Euro and USD.
The SDR is a basket currency composed of fixed quantities of the four major traded currencies (USD, Yen,
Euro and Pound Sterling). The composition of the basket is set by the International Monetary Fund.
In the following table the “Buy” amounts represent the Australian dollar (AUD) equivalent of commitments
to purchase foreign currencies and the “Sell” amounts represent the AUD equivalent of commitments to sell
foreign currencies.
Australia Post Annual Report 2004/05 Financial and Statutory Reports Notes to and forming part of the financial statements
| 91 |