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Valuation and accounting for derivatives ($418.7m assets; $52.0m liabilities) (continued)

the year impacting on the Group's derivative portfolio; and

• inherent complexity in interpreting the accounting principles in respect of the recording, valuation and disclosure of derivative instruments and hedge structures.

In assessing this key audit matter, we involved our senior Financial Instrument and Treasury specialists, who have industry specific experience and detailed knowledge of the compiex accounting reguirements.

foreign exchange rates, currency interest ratę curves, currency basis spreads and credit pricing curves;

•    recalculating a sample of derivative valuations;

•    evaluating the adequacy of hedge designation documentation for a sample of new hedges to management's documented financial risk management strategy and accounting requirements;

•    obtaining independent confirmations from counterparties with which the Group has borrowings and derivative financial instruments and agreeing these to accounting records; and

•    evaluating the appropriateness of the classification and presentation of dorivotive financial instruments and related financial risk management disclosures against accounting standard requirements.

Other Information

Other Information is financial and non-financial information in SGSP (Australia) Assets Pty ltd's annual reporting which is provided in addition to the Financial Report and the Auditor's Report. This includes the Directors Report. The Directors are responsible for the Other Information.

Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not express an audit opinion or any form of assurance conclusion thereon.

In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we consider whether the Other Information is materially.inconsistent with the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

We are required to report if we conclude that there is a materia! misstatement of this Other Information, iand based on the work we have performed on the Other Information that we obtained prior to the datę of this Auditor's Report we have nothing to report.

Responsibilities of Directors for the Financial Report

The Directors are responsible for:

•    preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001;

•    implementing necessary internal control to enable the preparation of a Financial Report that gives a true and fair view and is free from materiał misstatement, whether due to fraud or error; and

•    assessing the Group's ability to continue as a going concern. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

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