Full Annual Report - Inchcape

Financial statements
Notes to the accounts continued
14 Available for sale financial assets
At 1 January 19.9 16.7
Additions 1.6 0.1
Disposals (1.7) (0.5)
Fair value movement transferred to shareholders’ equity 0.4 (1.1)
Effect of foreign exchange rate changes (1.7) 4.7
At 31 December 18.5 19.9
Analysed as:
Non-current 17.8 17.9
Current 0.7 2.0
Assets held are analysed as follows:
2009
£m
2009
£m
2008
£m
2008
£m
18.5 19.9
Equity securities 0.3 0.2
Bonds 15.9 17.6
Other 2.3 2.1
2009
£m
2008
£m
18.5 19.9
At 31 December 2009 the bonds attracted a weighted average fixed interest rate of 5.2% (2008 – 5.1%). The bonds are traded on active
markets with coupons generally paid on an annual basis.
Other includes debentures that are not subject to interest rates and do not have fixed maturity dates. They are valued by reference to
traded market values.
Available for sale financial assets subject to fixed interest rates are aged by maturity date as follows:
Less than
one year
£m
Between
one and
two years
£m
Between
two and
three years
£m
Between
three and
four years
£m
Between
four and
five years
£m
Greater
than five
years
£m
Total
interest
bearing
£m
2009 0.4 1.5 0.9 1.8 1.8 9.5 15.9
2008 1.8 0.4 1.7 – 2.0 11.7 17.6
In certain jurisdictions management holds bonds to offset future vehicle warranty obligations. To meet this requirement, management
purchases and sells bonds regularly and does not usually hold the bonds to maturity. Accordingly, the maturity profile of the bonds is
not necessarily an indication of when management intends to realise the associated future cash flows.
The maximum exposure to credit risk at the reporting date is the fair value of the bonds classified as available for sale.
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Inchcape plc ¦ Annual Report and Accounts 2009