Wellcom_FY11-Financial-Report

Therefore a change in interest rates at the reporting

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Unformatted text preview: nterest rate swaps) as hedging instruments under a fair value hedge accounting model. Therefore a change in interest rates at the reporting date would not affect profit or loss. Cash flow sensitivity for variable rate instruments An increase of 100 basis points (‘bp’) in interest rates at the reporting date would have increased/(decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency rates, remain constant. The analysis is performed on the same basis for 2010. Equity $’000 Profit or loss $’000 30 June 2011 Variable rate instruments Cash flow sensitivity (net) 49 49 49 49 30 June 2010 Variable rate instruments Cash flow sensitivity (net) 28 28 28 28 A decrease of 100 basis points (“bp”) in interest rates at the reporting date would have had the equal opposite effect on the above instruments to the amounts shown above, on the basis that all other variables remain constant. Fair values Fair va...
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This document was uploaded on 02/06/2014.

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