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Notes to the accounts
21 Financial instruments
This note contains disclosures as required under FRS 13, Derivatives and Other Financial Instruments: Disclosures. The financial assets
and financial liabilities analysed below include fixed rate financial assets of £7 million, financial assets on which no interest is paid
(ie. debtors receivable in more than one year) of £10 million and financial liabilities on which no interest is paid of £35 million which are not
included in Group net debt, as analysed in note 22. Debtors receivable and creditors payable in less than one year, and the current assets
and current liabilities of Sainsbury’s Bank are excluded from the analysis. The Group’s policies and procedures in relation to its treasury
management, including management of interest rate and currency risk, are set out on pages 20 and 21 of the Financial Review.
Analysis of interest rate profile and currency of financial assets and financial liabilities
Financial assets
After taking into account various interest rate swaps and forward currency contracts the interest rate profile of the Group’s financial
assets at 3 April 1999 was:
Financial assets
Floating rate Fixed rate on which no
Total financial assets financial assets interest is paid
Currency £m £m £m £m
Sterling 453 437 7 9
US dollar 444 443 – 1
Euro 2 2 – –
50 J Sainsbury plc Annual report and accounts 1999
899 882 7 10
The US dollar financial assets were held at 3 April 1999, in part in anticipation of the acquisition of Star Markets Inc. (see note 32). Floating
rate financial assets comprise bank balances linked to bank Base Rate, and Money Market fund balances and commercial paper investments
bearing interest rates linked to LIBOR. The fixed rate financial asset has an interest rate of 7.75 per cent fixed for 6.2 years. The financial
assets on which no interest is paid have a weighted average period until maturity of 3.0 years.