Australia Post Annual Report 2008–09

Notes to and forming part of the Financial Report for the year ended 30 June 2009
29 Financial and capital risk management (continued)
(j) Liquidity risk management
Liquidity risk refers to the risk of encountering difficulties in meeting obligations associated with financial liabilities. Liquidity risk management is
associated with ensuring that there are sufficient funds available to meet financial commitments in a timely manner and planning for unforeseen
events which may curtail cashflows and cause pressure on liquidity. The corporation and the group measure and manage liquidity risk by forecasting
liquidity and funding requirements for the next three years as a minimum, which is reviewed annually by the board as part of the Treasury Strategy
Paper. In addition, the corporation prepares and reviews, on a daily basis, a rolling daily cash forecast for the quarter.
Liquidity risk tables
The following tables detail the corporation’s and the group’s remaining contractual maturity for its non-derivative financial liabilities and liquidity
analysis for derivative financial assets and liabilities. The tables have been drawn up based on the undiscounted cashflows and the earliest
date on which the corporation or the group can be required to pay. For derivative financial instruments, the tables have been drawn up based on the
undiscounted net cash outflows on derivative instruments that settle on a net basis and the undiscounted gross cash outflows on those derivatives
that require gross settlement. The tables include both interest and principal cashflows. When the amount payable is not fixed:
• for derivative financial assets and liabilities, the amount disclosed has been determined by reference to the projected cash outflows as illustrated
by the yield curve or forward curves existing at balance date
• for financial guarantee contracts and undrawn loan commitments, the amount disclosed has been determined based on the cash outflow that
is expected to occur.
Trade and other
payables
Finance lease and
hire purchase
liabilities payable
Forward exchange
contracts
Bonds payable
Interest rate swaps
Trade and other
payables
Forward exchange
contracts
Bonds payable
Interest rate swaps
Loans from
controlled entities
Undrawn loan
commitments to
controlled entities
106
On
demand
$m
0.0
0.0
0.0
0.0
0.0
As at 30 June 2009
Contractual maturity (nominal cashflows)
Less than
1 year
$m
626.2
1 to 2
years
$m
Australia Post Annual Report 2008–09 | Financial and statutory reports
0.3
14.9
23.0
(7.1)
0.0
0.0
0.0
31.5
(2.7)
2 to 5
years
$m
0.0
0.0
0.0
620.6
22.8
On
demand
$m
0.0
0.0
0.0
0.0
0.0
Consolidated
As at 30 June 2008
Contractual maturity (nominal cashflows)
Less than
1 year
$m
639.6
0.8
7.9
323.8
7.2
1 to 2
years
$m
0.0
0.0
1.7
14.4
3.5
2 to 5
years
$m
0.0
0.0
0.0
258.8
6.6
0.0 657.3 28.8 643.4 0.0 979.3 19.6 265.4
On demand
$m
0.0
0.0
0.0
0.0
2.9
12.0
As at 30 June 2009
Contractual maturity (nominal cashflows)
Less than
1 year
$m
603.9
14.9
23.0
(7.1)
0.0
0.0
1 to 2
years
$m
0.0
0.0
31.5
(2.7)
0.0
0.0
2 to 5
years
$m
0.0
0.0
620.6
22.8
0.0
0.0
On demand
$m
0.0
0.0
0.0
0.0
1.2
19.6
Corporation
As at 30 June 2008
Contractual maturity (nominal cashflows)
Less than
1 year
$m
624.0
7.9
323.8
7.2
0.0
0.0
1 to 2
years
$m
0.0
1.7
14.4
3.5
0.0
0.0
2 to 5
years
$m
0.0
0.0
258.8
6.6
14.9 634.7 28.8 643.4 20.8 962.9 19.6 265.4
0.0
0.0