1.Access the latest annual report of Qantas Airways Limited at and

answer the following questions.

(a) Identify the risks to which the Qantas Group is subject.

(b) Describe the components of the Qantas Group’s hedge reserve.

(c) Identify the financial assets and financial liabilities of the Qantas Group. What is the

fair value of the Group’s derivative financial instruments recognised in the statement of financial position?

2.Review Note 25 from the 2015 Annual Report of Brambles Limited in Appendix 13.1 and

answer the following questions.

(a) Identify the risks to which Brambles is subject.

(b) Note 25 includes a table that sets out the sensitivity of Brambles’ financial assets and financial liabilities to foreign exchange risk. The text beneath the table refers to the impacts of foreign currency movements, and you are asked to explain why the major effect of the exchange rate movements are in equity and not on profit.