Group to raise additional finance for normal business expansion or to pay dividends consistent with past practice is not expected to be impacted.
The differences between current Australian GAAP and A-IFRS which are more likely to have a significant effect on the Santos Group’s financial
performance and financial position are summarised below:
All financial instruments including derivatives will be recognised in the statement of financial position and all
derivatives will be carried at fair value.
Changes in the fair value of certain financial instruments will be recorded in the statement of financial performance.
Where financial instruments satisfy strict hedge criteria, changes in the fair value will be recognised in equity, or
will offset the hedged exposure in the statement of financial performance.
The A-IFRS relating to financial instruments applies from 1 January 2005. Unlike the majority of other A-IFRS
standards which require retrospective application as at 1 January 2004, this accounting standard does not require
retrospective application. The effect of the first time application of this standard on the opening statement of
financial position at 1 January 2005 will be to recognise additional financial assets and liabilities.
Santos intends to continue to align its hedging transactions to underlying exposures to achieve accounting
eligibility and thereby reduce profit and loss volatility.
Financial instruments
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