AS AT 30 JUNE 2011
72
Notes to the Financial Statements (continued)
23. Non-current liabilities – Deferred tax liabilities
Consolidated
2011
2010
$’000
$’000
The balance comprises temporary diferences attributable to:
Amounts recognised in proft or loss
Diference between lease principal to be returned as assessable income
and depreciation on leased assets to be claimed as a tax deduction
23,011
19,288
Initial direct transaction costs
10,627
10,945
33,638
30,233
Movements
:
Opening balance at 1 July
30,233
25,470
Charged/(credited) to the income statement
3,405
4,763
Closing balance 30 June
33,638
30,233
Deferred tax liabilities
33,638
30,233
Deferred tax liabilities to be settled within 12 months
19,775
17,991
Deferred tax liabilities to be settled after more than 12 months
13,863
12,242
33,638
30,233
24. Non-current liabilities – Provisions
Consolidated
2011
2010
$’000
$’000
Employee benefts – long service leave
470
609
25. Non-current liabilities – Derivative fnancial instruments
Consolidated
2011
2010
$’000
$’000
Interest rate swap contracts – cash fow hedges
228
–
Instruments used by the Group
The Group is party to derivative fnancial instruments in the normal course of business in order to hedge exposure
to fuctuations in interest rates in accordance with the Group’s fnancial risk management policies (refer to note 38).
Interest rate swap contracts – cash fow hedges
It is policy to protect part of the loans from exposure to increasing interest rates. Accordingly, the Group has entered into
interest rate swap contracts under which it is obliged to receive interest at variable rates and to pay interest at fxed rates.
Swaps currently in place cover approximately 69% (2010 – $nil) of the variable loan principal outstanding and are timed to
expire as each loan repayment falls due.
The contracts require settlement of net interest receivable or payable monthly. The settlement dates coincide with the
dates on which interest is payable on the underlying debt. The contracts are settled on a net basis.
The gain or loss from remeasuring the hedging instruments at fair value is recognised in other comprehensive income and
deferred in equity in the hedging reserve, to the extent that the hedge is efective. It is reclassifed into proft or loss when
the hedged interest expense is recognised. In the year ended 30 June 2011 no losses were reclassifed into proft or loss
(2010 – $nil) and included in fnance costs. There was no hedge inefectiveness in the current or prior year.
Risk exposures and fair value measurements
Information about the Group’s exposure to credit risk, foreign exchange and interest rate risk and about the methods and
assumptions used in determining fair values is provided in note 38. The maximum exposure to credit risk at the end of the
reporting period is the carrying amount of each class of derivative fnancial liabilities mentioned above.