2013 AnnuAl RepoRt - Australian Grand Prix

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2013The Corporation’s exposure to interest rate risk is set out below:2013 Interest rate exposureWeightedaverage effectiveinterest rate%Carryingamount$’000’sFixedinterestrate$’000’sVariableinterestrate$’000’sNoninterestBearing$’000’sFinancial assetsCash at bank 2.25% 3,146 - 3,146 -Cash on deposit 2.76% 16,135 16,135 - -Receivables 803 - - 803Total financialassets 20,084 16,135 3,146 803Financial liabilitiesPayables 2,098 - - 2,098Derivatives 9,778 - - 9,778Total financialliabilities 11,876 - - 11,8762012 Interest rate exposureWeightedaverage effectiveinterest rate%Carryingamount$’000’sFixedinterestrate$’000’sVariableinterestrate$’000’sNoninterestBearing$’000’sFinancial assetsCash at bank 3.43% 13,495 - 13,495 -Cash on deposit 3.78% 3,661 3,661 - -Receivables 1,666 - - 1,666Total financialassets 18,822 3,661 13,495 1,666Financial liabilitiesPayables 2,745 - - 2,745Derivatives 20,379 - - 20,379Total financialliabilities 23,124 - - 23,124(f) Sensitivity Disclosure AnalysisThe Corporation’s sensitivity to market risk is determined based on the observed range of actualhistorical data for the preceding five year period, with all variables other than the primary riskvariable held constant. Taking into account past performance, future expectations, economicforecasts, and management’s knowledge and experience of financial markets, the Corporationbelieves the following movements are reasonably possible over the next 12 months (base ratesare sourced from Treasury Corporation of Victoria): a parallel shift of +1.0 per cent and -1.0 percent in the market interest rates from year-end rates.The impact on net operating result and equity for each category of financial instrument, otherthan derivatives, held by the Corporation at year-end as presented to key managementpersonnel, if the above movements were to occur, is immaterial for the 2012 and 2013 years. Forfinancial derivatives, the Corporation is exempt from disclosing gross values (refer note 16 (e)).5858Australian Grand Prix Corporation Annual Report 2013