Annual Report 2011 Australian Grand Prix Corporation

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 201114. Derivatives2011 2010$000’s$000’sCurrent foreign exchange forward contracts (7,296) 672Non-current foreign exchange forward contracts (19,483) 7,507Non-current foreign exchange options contracts 1,223 6,314(25,556) 14,493Foreign exchange contracts were entered into at the request of the Victorian Government’sDepartment of Treasury and the Treasury Corporation of Victoria.15. Equity(a) Contributed CapitalContributed Capital at the beginning of the year 10,739 10,739Contributed Capital at the end of the year 10,739 10,739(b) Cashflow hedge reserveReserve at the beginning of the year 10,334 -Current year reserve (35,458) 10,334Reserve at the end of the year (25,124) 10,334(c) Asset revaluation reserveReserve at the beginning of the year - -Current year reserve 3,357 -Reserve at the end of year 3,357 -(d) Accumulated surplusAccumulated surplus at the beginning of the year 20,160 6,830Current year net (loss)/ surplus (5,580) 13,330Accumulated surplus at the end of the year 14,580 20,16016. Additional Financial Instrument DisclosuresThe Corporation’s financial instruments comprise of:• Cash assets;• Term deposits;• Receivables;• Payables; and• Derivatives.Details of the significant accounting policies and methods adopted, including the criteria forrecognition, the basis of measurement, and the basis on which income and expenses are recognised,with respect to each class of financial asset, financial liability and equity instrument are disclosed inNote 1 to the financial statements.The Corporation’s activities expose it to a variety of financial risks including interest rate risk, foreignexchange risk, liquidity risk and credit risk. The Corporation manages these financial risks in accordancewith the financial risk policy. The Corporation uses different methods to measure different types ofrisk to which it is exposed. Primary responsibility for the identification and management of financialrisks rests with the Audit and Risk Committee of the Corporation.54Australian Grand Prix Corporation Annual Report 2011