Australia Post Annual Report 2008–09

29 Financial and capital risk management (continued)
(k) Fair value of financial assets and liabilities
The fair value of financial assets and financial liabilities is based on market prices (where a market exists) or by discounting back the expected
future cashflows using the applicable yield curve for assets and liabilities with similar risk profiles. The fair value of cash and cash equivalents
and short-term receivables and payables approximates their carrying value.
Except as detailed in the following table, the carrying amounts of financial assets and financial liabilities recorded at amortised cost in the financial
statements approximates their fair value.
Financial assets
Finance lease
receivable
Loans to controlled
and jointly
controlled entities
Financial liabilities
Bonds payable
Carrying
amount
$m
103.5
130.7
541.7
Consolidated Corporation
2009 2008 2009 2008
Fair
value
$m
84.4
133.8
537.1
Carrying
amount
$m
103.5
130.3
514.2
Fair
value
$m
92.2
121.7
514.2
Carrying
amount
$m
103.5
130.9
541.7
Fair
value
$m
84.4
134.0
537.1
Carrying
amount
$m
30 Leases
(i) Operating leases
The corporation leases a total of 814 properties. These are under operating leases with various occupancy terms that are due to expire in the next
one to ten years. The leased property portfolio comprises 32 commercial, 225 industrial, 10 residential, 542 retail and five general sites. Leases
generally provide the corporation with a right of renewal, at which time the commercial terms are renegotiated. Lease payments generally comprise
a base amount plus an incremental contingent rental based on movements in the Consumer Price Index and reviews to market-based levels.
Minimum lease payments
Contingent rentals
103.5
146.0
514.2
2009
$m
127.0
1.5
Fair
value
$m
92.2
137.3
514.2
Consolidated
Operating lease rentals (see note 3) 128.5 115.7
Full details of the ageing of the group’s operating leases is contained in the commitments note.
(ii) Finance lease receivable
The corporation has a finance lease receivable relating to the disposal in 1996–97 of the Sydney GPO heritage site under a 99-year lease.
The agreement includes a seven-year rent-free period to the lessee, followed by a guaranteed minimum rental.
Reconciliation of minimum lease payments to lease receivable:
Gross minimum finance lease rentals receivable
Lease finance revenue not yet recognised
2009
$m
562.2
(458.7)
Finance lease receivable (notes 6 and 9) 103.5 103.5
Minimum finance lease rentals receivable:
(a) within one year
(b) from one year to five years
(c) over five years
Total 562.2 568.7
The lease commitments receivable at year-end equal the minimum lease payments, as there are no material contingent payments or unguaranteed residual value relating
to this lease agreement.
6.5
26.0
529.7
2008
$m
111.6
4.1
2008
$m
568.7
(465.2)
6.5
26.0
536.2
Australia Post Annual Report 2008–09 | Financial and statutory reports 107