INSTRUCTIONS - Realview

NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2009Note 2 Financial risk management cont.(e) Fair value estimationOn-Balance SheetThe net fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities ofthe consolidated entity approximates their carrying value. The net fair value of other monetary financial assets and financialliabilities is based upon market prices.Off-Balance SheetThe consolidated entity has potential financial liabilities that may arise from the contingency disclosed in Note 27. As explainedin that note, no material losses are anticipated in respect of any of that contingency, subject to the outcome of the judgementand any subsequent appeal in the Kingstream matter. Fair values for off-balance sheet assets or liabilities are the Directors’estimate of amounts which would be payable by the consolidated entity as consideration for the assumption of thosecontingencies by another party.Fair valuesThe carrying amounts and the net fair values of financial assets and liabilities of the consolidated entity at balance date are:2009 2008Carrying Net Fair Carrying Net FairAmount Value Amount Value$’000 $’000 $’000 $’000Financial assets– Cash and cash equivalents 53,692 53,692 35,517 35,517– Restricted cash 24,339 24,339 20,597 20,597– Receivables 8,120 8,120 9,457 9,457– Available-for-sale financial assets 13,869 13,869 13,941 13,941– Gold put options – – 34,786 34,786– Listed options – – 64 64100,020 100,020 114,362 114,362Financial liabilities– Payables 38,376 38,376 59,273 59,273– Convertible notes (1) 77,100 74,683 100,000 92,469– Equipment financing facility 17,464 16,401– Other loans 4,390 4,154 3,258 3,258137,330 133,614 162,531 155,000(1) The fair value of the convertible notes was determined on the basis that the notes will be on issue until 4 June 2010, at which time theholders of the notes have the option to require repayment. The notes have an expiry date of 4 June 2012.Note 3 Critical Accounting Estimates And JudgementsThe preparation of financial statements requires management to make judgements, estimates and assumptions that affectthe application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual resultsmay differ from these estimates under different assumptions and conditions. Estimates and judgements are continuallyevaluated and are based on historical experience and on various other factors, including expectations of future events thatare believed to be reasonable under the circumstances. Revisions to accounting estimates are recognised in the period inwhich the estimate is changed and in any future periods affected.The consolidated entity has identified the following critical accounting policies under which significant judgements, estimatesand assumptions are made, and where actual results may differ from these estimates under different assumptions andconditions that could materially affect financial results or financial position reported in future periods.stbarbara.com.au – Annual Report 2009: 63