Wellcom_FY11-Financial-Report

The groups policy is to manage its interest cost and

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Unformatted text preview: rily to the Group’s short term debt obligations with floating interest rates. The Group’s policy is to manage its interest cost and its ability to service the cost, using a combination of sensitivity analysis against the underlying cash flows of the revenue generating assets purchased, matching loan terms against the life of the cash generating assets, the available mix of funding options allowing for floating rate facilities to average interest rates and the availability of entering into interest rate swaps and similar products if required. Profile At reporting date the interest rate profile of the Group’s interest-bearing financial instruments was: Carrying Amount 2010 2011 $’000 $’000 Fixed rate instruments Financial assets Financial liabilities 10,000 0 10,000 7,608 0 7,608 Variable rate instruments Financial assets Financial liabilities 2,500 (4,866) (2,366) 2,195 2,195 Fair value sensitivity analysis for fixed rate instruments The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss, and does not have derivatives (i...
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