30 FINANCIAL INSTRUMENTS
(i) Credit Risk Exposures
The credit risk on financial assets of the economic entity which have been recognised in the Statement of Financial Position, is generally the carrying amount, net of any doubtful debts.
(ii) Interest Rate Risk Exposures
The economic entity’s exposure to interest rate risk and the effective weighted average interest rate for each class of financial assets and financial liabilities is set out in the following table
	Fixed Interest Maturing
Financial Assets:	Floating Rate $’000	Non-interest Bearing $’000	1 year or less $’000	Over 1 to 5 years $’000	Over 5 years $’000	2004 Total $’000	2003 Total $’000
Cash	19 704	–	–	–	–	19 704	13 428
Receivables	–	13 605	–	–	–	13 605	11 961
	19 704	13 605	–	–	–	33 309	25 389
Weighted average interest rate	4.87%	–	–	–	–
Financial Liabilities:
Interest Bearing Loan	–	–	189	1 009	668	1 866	2 031
Payables	–	8 088	–	–	–	8 088	5 125
	–	8 088	189	1 009	668	9 954	7 156
Weighted average interest rate	–	–	5.35%	5.35%	5.35%
Net Financial Assets/(Liabilities)	19 704	5 517	(189)	(1 009)	(668)	23 355	18 233

30 FINANCIAL INSTRUMENTS (continued)	Note	Year ended 30 June 2004 $’000	Year ended 30 June 2003 $’000
Reconciliation of Net Financial Assets to Net Assets
Net Financial Assets as above		23 355	18 233
Non-Financial Assets and (Liabilities)
Current Inventories		1 463	1 909
Other Current Assets		731	461
Non Current Inventories		633 026	618 270
Property Plant and Equipment		276 682	243 389
Other Non Current Assets		78	61
Other Creditors and Accruals		(1 066)	(1 380)
Employee Benefits		(3 422)	(3 855)
Current Provisions		(3 921)	(3 011)
Other Current Liabilities		(41)	(63)
Non Current Provisions		(1 062)	(1 017)
Net Assets per Statement of Financial Position		925 823	872 997
(iii) Net Fair Value of Financial Assets and Liabilities
The net fair value of cash, trade debtors and payables approximates their carrying amount.
The resultant net fair values represents the best estimate of replacement cost. The cost of realising fair values is considered immaterial.
Furthermore, management consider that all financial instruments cannot be readily traded on organised markets in standardised form.
The carrying amounts and net fair values of financial assets and liabilities at balance date are:
Financial Assets:
Cash		19 704	13 428
Trade Debtors		13 605	11 961
Doubtful Debts		–	–
		33 309	25 389
Financial Liabilities:
Trade Creditors		8 088	5 125
Interest Bearing Loan		1 866	2 031
		9 954	7 156

30 FINANCIAL INSTRUMENTS  (continued)

(iv) Terms and Conditions

Financial Assets

Cash on Hand and Deposits

Cash at bank is recorded at its nominal amount. Interest revenue is recorded on an accrual basis. Interest is calculated on the average daily balance of the account and the interest rate average overnight cash deposit rate less 0.05% which averaged 4.87% for the year ended 30 June 2004.

Receivables

Receivables are recorded at amounts due to SAFC less a provision for doubtful debts. They are recorded as the debts fall due. Receivables are due within 30 days.

Financial Liabilities

Creditors

Creditors are recorded at the agreed amounts at which the liabilities are to be settled. They are recorded when the goods and services have been provided. Terms of payment are 30 days unless otherwise agreed in the terms and conditions of individual contracts.

(v) Hedging instruments

Hedges of specific instruments

SAFC closed exchange contracts during June 2004 that were entered as a hedge of anticipated costs to purchase components relating to the fire truck replacement program (Note 25b).

Under the contract, SAFC sold $US821 219 and EURO133 177 on 30 June 2004. As the hedge transaction was treated as specific, in accordance with UIG 33, the realised exchange loss of $112 444 at 30 June, was recognised as part of the cost to purchase the components.