NOTE 30
FINANCIAL RISK MANAGEMENT (CONTINUED)
(d) Fair value measurements
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for
disclosure purposes.
AASB 7
Financial Instruments: Disclosures
requires disclosure of fair value measurements by level of the following fair
value measurement hierarchy:
(a) quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)
(b) inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as
prices) or indirectly (derived from prices) (level 2), and
(c) inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3).
The following table presents the Group’s assets and liabilities measured and recognised at fair value at 30 June 2013
and 30 June 2012:
30 June 2013
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
$’000
Assets
Foreign exchange forward contracts used for hedging
-
100
-
100
Total assets
-
100
-
100
Liabilities
Interest rate swaps used for hedging
-
7,981
-
7,981
Total liabilities
-
7,981
-
7,981
30 June 2012
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
$’000
Assets
Foreign exchange forward contracts used for hedging
-
175
-
175
Total assets
-
175
-
175
Liabilities
Interest rate swaps used for hedging
-
5,446
-
5,446
Foreign exchange forward contracts used for hedging
-
33
-
33
Total liabilities
-
5,479
-
5,479
Capital Risk Management
Management’s objectives when managing capital are to safeguard their ability to continue as a going concern, so that
they can continue to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal
capital structure to reduce the cost of capital.
In managing its capital structure and in accordance with agreements relating to the take up of the NSW lease, it
has been agreed that the Group will reinvest any profits in the period to June 2013 rather than making any dividend
payments to its Shareholders. The Group is not subject to any externally imposed capital requirements.
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