2013 AnnuAl RepoRt - Australian Grand Prix

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2013The following table discloses the contractual maturity analysis for the Corporation’s contractualfinancial liabilities.CarryingamountNot pastdue and notimpairedPast due but not impairedLess than 1month1-3 months 3 months –1 year$’000’s $’000’s $’000’s $’000’s $’000’s2013 Payables 2,098 1,586 385 120 72012 Payables 2,745 2,394 24 254 73(e) Market riskThe Corporation’s exposures to market risk are primarily through foreign currency risk and interestrate risk. Objectives, policies and processes used to manage each of these risks are disclosedbelow.Foreign currency riskThe Corporation has entered into forward foreign exchange contracts and foreign exchangeoptions to hedge certain commitments denominated in US dollars. These contracts extend to2016. Current derivatives relate to forward contracts that fall due within the next 12 months andnon current derivatives relate to forward contracts and foreign exchange options that fall dueafter this date.These forward foreign exchange contracts and foreign currency options have been entered intowith full compliance of guidelines from, and with the approval of, the Treasurer of Victoria inaccordance with the requirements of Section 24(2) of the Australian Grands Prix Act 1994.The Corporation has not disclosed the gross value payable and receivable under the foreigncurrency contracts and is exempted from doing so under Section 49 of the Australian Grands PrixAct 1994. Disclosure of this information would constitute a breach of the international agreementsas defined in note 25.Interest rate riskThe Corporation has an interest rate risk with respect of monies held on account and on termdeposit with the bank (at floating interest rate) and Treasury Corporation of Victoria (at fixed andfloating interest rates).The Corporation manages this risk by mainly undertaking fixed rate financial instruments withrelatively even maturity profiles, with only minimised amounts of financial instruments at floatingrates. The Corporation has concluded for cash at bank, these financial assets can be left atfloating interest rates without exposing the Corporation to significant bad risk, and monitorsmovements in interest rates on a regular basis.The Corporation does not have any interest rate risk in respect of financial liabilities.Australian Grand Prix Corporation Annual Report 2013 5757