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## notes to the financial statements 

for the year ended 30 June 2001 

Liabilities under the CPI Bond Facility have been classified as fixed rate liabilities maturing beyond five years for the following reasons: 

• The amount of principal expected to be retired through annuity payments over the next four years is not material; and 

• The outstanding principal, while subject to indexation for movements in the CPI, is effectively hedged against the effect of such movements as toll revenue which is the major component of the combined entity’s revenues, is also indexed for movements in the CPI. 

## Net Fair Values of Financial Assets and Liabilities 

The carrying amount and net market value of financial assets and liabilities brought to account at balance date are the same. 

The aggregate net fair value of interest rate swaps not recognised in the balance sheet (refer note 1 held at 30 June 2001 is a liability of $81.1 million (2000: $85 million). 

As these contracts are hedging anticipated future interest payments, any unrealised gains and losses on the contracts, together with the cost of the contracts, are deferred and will be recognised in the measurement of the underlying transaction. 

The valuation of interest rate swaps reflects the estimated amounts which the Trust expects to pay or receive to terminate the contracts (net of transaction costs) or replace the contracts at their current market rates as at 30 June 2001. This is based on independent market quotations and is determined using accepted valuation techniques. 

## 20. SEGMENT INFORMATION 

The Trust operates in one geographic segment in Victoria, Australia and one industry segment being the operation of the Melbourne City Link. 

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## 21. RECONCILIATION OF NET RESULT FROM ORDINARY ACTIVITIES TO NET CASH FLOW FROM OPERATING ACTIVITIES 

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