Financial statements
Section B: Notes to the Group financial statements for the year ended 30 June 2024
Section B: Notes to the Group financial statements for the year ended 30 June 2024
B13 Borrowings The following table shows the carrying amounts of borrowings included in the Group's consolidated balance sheet.
2024
2023 $M $M
Current Capital markets debt
1,168
200 157
Term debt
227
Bank overdraft
—
10
Total current borrowings
1,395
367
Non-current Capital markets debt US private placements
13,030
12,472
2,822 2,480
2,822 2,679
Term debt
Shareholder loan notes
—
218
Total non-current borrowings
18,332
18,191
Total borrowings
19,727
18,558
Borrowings accounting policy Initial recognition and subsequent measurement Borrowings are recognised initially on the trade date (the date on which the Group becomes a party to the contractual provisions of the instrument). Borrowings are initially recognised at fair value, which typically reflects the proceeds received, net of directly attributable transaction costs. Borrowings are subsequently measured at amortised cost, using the effective interest method. Any difference between the proceeds (net of direct transaction costs) and the amount payable at maturity is recognised in the profit and loss over the term of the borrowings using the effective interest method. Borrowings that are in designated fair value hedge relationships are adjusted for fair value movements attributable to the hedged risk. Fees paid on the establishment of loan facilities are recognised as directly attributable transaction costs of the borrowing to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates. Translation of foreign currency denominated borrowings The Group revalues its foreign currency denominated borrowings each period using the spot exchange rate at the reporting date. Classification Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Borrowing costs Borrowing costs are recognised as expenses in the period in which they are incurred, except to the extent to which they relate to the construction of qualifying assets (assets under construction), in which case specifically identifiable borrowing costs are capitalised into the cost of the asset. Borrowing costs include interest on short-term and long-term borrowings. Derecognition Borrowings are derecognised when the contractual obligations are discharged, cancelled or expired. Any gain or loss is recognised in profit and loss when the borrowing is derecognised.
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