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## NOTE 42 - FINANCIAL INSTRUMENTS (continued) 

(e) Credit risk exposures 

The consolidated entity’s maximum exposures to credit risk at reporting date in relation to each class of recognised financial asset, other than derivatives, is the carrying amount of those assets as indicated in the Statement of Financial Position. 

In relation to the derivative financial instruments, whether recognised or unrecognised, credit risk arises from the potential failure of counterparties to meet their obligations under the contract or arrangement. The consolidated entity’s maximum credit risk exposure in relation to these is as follows: 

(i) purchased put options - which is limited to their fair value as at the reporting date, being $3.9m (2003:$3.2m). 

The major geographic concentrations of credit risk arise from the location of the counterparties to the consolidated entity’s financial assets as shown in the following table: 

<img src='content_image/120362.jpg'>

Concentration of credit risk on financial assets are indicated in the following table by percentage of the total balance receivable from counterparties in the specified categories. 

<img src='content_image/120363.jpg'>

The credit risk does not take into account the value of any collateral or security. 

(f) Net fair value of financial assets and liabilities 

The carrying amounts and estimated net fair values of financial assets and financial liabilities (including derivatives) held at balance date are given below. Other financial assets and liabilities 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. 

<img src='content_image/120364.jpg'>

