Annual Report - Bega Cheese

Financial Statements
Period Financial Ended Statements 30 June 2010
Notes Period to Ended the Financial 30 June Statements
2010
Notes to the Financial Statements
c. Liquidity Risk (cont.)
0-12 months 1-2 years 2-5 years Total Carrying
contractual amount
cash flows
At 30 June 2009 $'000 $'000 $'000 $'000 $'000
Consolidated
Non Derivatives
Finance leases (988) (988) (761) (2,737) (2,475)
Secured bank loans (81,410) (18,995) (83,612) (184,017) (163,934)
Trade and other payables (86,320) (150) (150) (86,620) (86,239)
Derivatives
Financial liabilities (869) (338) (695) (1,902) -
Inflows 55,667 1,421 289 57,377 57,377
Outflows (50,536) - - (50,536) (50,536)
Total (164,456) (19,050) (84,929) (268,435) (245,807)
Company
Non Derivatives
Finance leases (80) (80) (80) (240) (240)
Secured bank loans (45,147) (15,062) (79,560) (139,769) (118,000)
Trade and other payables (61,316) - - (61,316) (60,933)
Derivatives
Financial liabilities (869) (338) (695) (1,902) -
Inflows 11,130 1,421 289 12,840 12,840
Outflows (9,461) - - (9,461) (9,461)
Total (105,743) (14,059) (80,046) (199,848) (175,794)
d. Fair Value Estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure
purposes.
The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading and
available-for-sale securities) is based on quoted market prices at the reporting date. The quoted market price used for
financial assets held by the Group is the current bid price.
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives and
investments in unlisted subsidiaries) is determined using valuation techniques. The Group uses a variety of methods and
makes assumptions that are based on market conditions existing at each balance date. The fair value of interest rate swaps
is calculated as the present value of the estimated future cash flows. The fair value of forward exchange contracts is
determined using forward exchange market rates at the reporting date.
The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values
due to their short term nature. The fair value of financial liabilities for disclosure purposes is estimated by discounting the
future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments.
The Directors consider that the carrying amounts of financial assets and financial liabilities recorded at amortised cost in the
financial statements approximates to their fair values.
All fair value instruments are measured using quoted prices from active markets.
Bega Cheese Limited 2010 Annual Report 30
Bega Cheese Limited 2010 Annual Report 30