116 NOTEs TO THE FINANCIAL sTATEMENTs  36. FINANCIAL AND CAPITAL RIsk MANAGEMENT (CONTINUED) FAIRFAx MEDIA LIMITED AND CONTROLLED ENTITIES FOR THE PERIOD ENDED 30 JUNE 2013 The table below shows the effect on net profit and equity after income tax if interest rates at reporting date had been 30%  higher or lower with all other variables held constant, taking into account all underlying exposures and related hedges.  Concurrent movements in interest rates and parallel shifts in the yield curves are assumed. A sensitivity of 30% (2012: 30%) has been selected as this is considered reasonable given the current level of both short term  and long term Australian interest rates. A 30% sensitivity would move short term interest rates at 30 June 2013 from around  2.82% to 3.67% representing a 85 basis point shift (2012: 106 basis point shift). In 2013, 66% (2012: 72%) of the Group’s debt, taking into account all underlying exposures and related hedges was denominated  in Australian Dollars; therefore, only the movement in Australian interest rates is used in this sensitivity analysis.  Based on the sensitivity analysis, if interest rates were 30% higher, net profit would be impacted by the interest expense being  higher on the Group’s net floating rate Australian Dollar positions during the year. Sensitivity analysis (B) FoReiGn CuRRenCy RiSk Foreign currency risk refers to the risk that the value or the cash flows arising from a financial commitment, or recognised  asset or liability will fluctuate due to changes in foreign currency rates. The Group’s foreign currency exchange risk arises  primarily from: • borrowings denominated in foreign currency; and • firm commitments and/or highly probable forecast transactions for receipts and payments settled in foreign currencies and  prices dependent on foreign currencies respectively. IMPACT ON POST-TAX PROFIT IMPACT ON EQUITY 2013 $’000 2012 $’000 2013 $’000 2012 $’000 If interest rates were 30% higher with all other variables held constant - increase/(decrease)  (2,603)  (4,352)  1,670   2,663  If interest rates were 30% lower with all other variables held constant - increase/(decrease)  2,603   4,352   (1,704)  (2,755) As at 24 June 2012 FLOATING RATE $’000 FIXED RATE $’000 NON-INTEREST  BEARING $’000 TOTAL $’000 Financial assets Cash and cash equivalents  358,364   –   –   358,364  Trade and other receivables  –   –   323,242   323,242  Available for sale investments  –   –   1,991   1,991  Other financial assets  14,615   –   67   14,682  Derivatives  23,976   –   3,187   27,163  Total financial assets  396,955   –   328,487   725,442  Financial liabilities Payables  –   –   282,637   282,637  Interest bearing liabilities: Bank borrowings and loans  718,177   8,311   –   726,488  Senior notes  24,361   441,941   –   466,302  Finance lease liability  14,583   –   –   14,583  Total interest bearing liabilities  757,121   450,252   –   1,207,373  Derivatives  60,964   27,243   7,421   95,628  Total financial liabilities  818,085   477,495   290,058   1,585,638 Total interest bearing liabilities  757,121   450,252   –   1,207,373  Notional principal hedged  (122,132)  (108,525)  –   (230,657) net exposure to cash flow interest rate risk  634,989   341,727   –   976,716 