Note 12
Current assets - Other current assets
Consolidated
2012
2011
$’000
$’000
Prepayments ‑ other
3,636
5,426
Other current assets
532
447
4,168
5,873
Note 13
Derivative financial instruments
Consolidated
2012
2011
$’000
$’000
Current assets
Forward foreign exchange contracts ‑ cash flow hedges (a)
175
-
Total current derivative financial instrument assets
175
-
Current liabilities
Forward foreign exchange contracts ‑ cash flow hedges ((a)(ii))
33
11
Total current derivative financial instrument liabilities
33
11
Non‑current liabilities
Interest rate swaps ‑ cash flow hedges ((a)(i))
5,446
-
Total non‑current derivative financial instrument liabilities
5,446
-
Total derivative financial instrument liabilities
5,479
11
Total
(5,304)
(11)
(a) Instruments used by the Group
The Group is party to derivative financial instru-
ments in the normal course of business in order to
hedge exposure to fluctuations in foreign exchange
rates and interest rate swaps in accordance with
Board approved Treasury Policy, (refer to note 2).
(i) Interest rate swap contracts - cash flowhedges
In December 2011 the Group as a part of the
$750m domestic note program executed the
second bond issuance in 2 tranches of $200m
and $100m both to mature on 9 December 2014.
The bonds were issued on a floating rate which is
repayable in 3 years, interest is re‑priced quarterly
and payable in arrears. As a result, ARTC is
exposed to fluctuations in the benchmark interest
rate (BBSW).
To reduce this exposure ARTC entered into a 3
year interest rate swap (IRS) on 9 December 2011
to hedge its $200m floating rate bond issue and
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