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## Notes to the Financial Statements (continued) 

## 38. Financial Instruments (continued) 

## (c) Foreign Exchange 

The following table summarises by currency the Australian dollar value of forward foreign exchange agreements. Foreign currency amounts are translated at rates current at the reporting date. The ‘buy’ amounts represent the Australian dollar equivalent of commitments to purchase foreign currencies. Contracts to buy and sell foreign currency are entered into from time to time to offset purchase and sale obligations so as to maintain a properly hedged position. 

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## (d) Net fair value of financial assets and liabilities 

The carrying amounts of trade receivables, trade creditors, bank loans, investment securities (current) and outstanding forward foreign exchange contracts approximate their fair values. The carrying amounts and estimated net fair values of other financial assets (and financial liabilities) held at balance date are given below. Short term instruments where carrying amounts approximate net fair values, are omitted. The net fair value of a financial asset (or a financial liability) is the amount at which the asset could be exchanged, or liability settled in a current transaction between willing parties after allowing for transaction costs. 

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The carrying amounts shown in the table are included in the Statement of Financial Position under the indicated captions. In the current year, investment securities carried at cost in "Other Financial Assets" (Non-Current) are: 

 Briscoe Group Limited, with a carrying value of $4,583,552 and a net fair value, based on the market value at 30 June 2003, of $9,440,093. 

 Gazal Corporation Limited, with a carrying value and net fair value of $2,350,000. 

The interest rate swaps are recorded in the books at $300,000,000 and the fair value, based on the market value at 30 June 2003, is $295,736,109 (2002: $101,155,969 on a fixed interest rate swap of $100 million). 

The following methods and assumptions were used to estimate the net fair value of each class of financial instrument: 

