AWB Limited - 2003 Annual Report
AWB Limited - 2003 Annual Report
AWB Limited - 2003 Annual Report
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NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS<br />
FOR THE YEAR ENDED 30 SEPTEMBER <strong>2003</strong><br />
32. FINANCIAL INSTRUMENTS (continued)<br />
(b) Foreign exchange risk<br />
The consolidated entity enters into forward exchange contracts and options to hedge (or hedge a proportion) of sale and purchase<br />
commitments denominated in foreign currencies subject to board approved limits.<br />
The following table sets out the gross value to be received under foreign currency contracts, the weighted average exchange rates and<br />
the settlement periods of outstanding contracts for the consolidated entity relating to future anticipated sales and purchases:<br />
Forward exchange contracts:<br />
Consolidated<br />
<strong>2003</strong> 2002 <strong>2003</strong> 2002<br />
Weighted average rate $'000 $'000<br />
Buy US dollars<br />
Not later than one year<br />
Later than one year but not later than two years<br />
Sell US dollars<br />
Not later than one year<br />
Later than one year but not later than two years<br />
Buy Canadian dollars<br />
Not later than one year<br />
Later than one year but not later than two years<br />
Sell Canadian dollars<br />
Not later than one year<br />
Later than one year but not later than two years<br />
0.6384 0.5377<br />
n/a 0.5236<br />
0.6146 0.5215<br />
n/a 0.5255<br />
0.8977 0.8325<br />
0.8849 0.8328<br />
0.8706 0.8340<br />
0.8823 0.8361<br />
176,336 521,077<br />
– 4,037<br />
(163,869) (788,517)<br />
– (34,839)<br />
43,822 87,774<br />
1,729 873<br />
(51,205) (108,065)<br />
(1,678) (13,862)<br />
5,135 (331,522)<br />
Currency options:<br />
Buy US dollar put<br />
Not later than one year<br />
Sell US dollar call<br />
Not later than one year<br />
Sell US dollar put<br />
Not later than one year<br />
Buy US dollar call<br />
Not later than one year<br />
0.6481 0.5269 (12,344) (75,921)<br />
0.6760 0.5600 (7,402) (71,432)<br />
0.6452 0.4900 23,256 16,327<br />
0.6938 – 11,532 –<br />
15,042 (131,026)<br />
The net deferred costs and exchange gains and losses on foreign exchange hedges of anticipated foreign currency sales and purchases<br />
recognised in the statement of financial position and the timing of their anticipated recognition as part of sales and purchases are:<br />
Consolidated<br />
Net deferred gains/(losses)<br />
<strong>2003</strong> 2002<br />
$'000 $'000<br />
Not later than one year 2,117 24,804<br />
Later than one year but not later than two years – 38<br />
2,117 24,842<br />
80
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