Page 213 - Annual Report 2020

22 Financial risk management continued
22.3 Financial assets and liabilities
The financial assets and liabilities are presented by class in the table below at their carrying amounts. Strategic Report

IFRS 13
Fair value hierarchy 2020 2019
Level (1) IFRS 9 Classification US$M US$M
(2)
Current cross currency and interest rate swaps 2 Fair value through profit or loss 3 15
Current other derivative contracts (3) 2, 3 Fair value through profit or loss 45 57
Current other investments (4) 1, 2 Fair value through profit or loss 36 15
Non-current cross currency and interest rate swaps (2) 2 Fair value through profit or loss 2,009 739
Non-current other derivative contracts (3) 2, 3 Fair value through profit or loss 159 180
Non-current investment in shares 3 Fair value through other
comprehensive income 32 34
Non-current investment in shares 3 Fair value through profit or loss − 6 Governance at BHP
Non-current other investments (4) (5) 1, 2, 3 Fair value through profit or loss 322 344
Total other financial assets 2,606 1,390
Cash and cash equivalents Amortised cost 13,426 15,613
Trade and other receivables (6) Amortised cost 1,633 1,929
Provisionally priced trade receivables 2 Fair value through profit or loss 1,480 1,446
Loans to equity accounted investments Amortised cost 40 33
Total financial assets 19,185 20,411
Non-financial assets 85,598 80,450
Total assets 104,783 100,861 Remuneration Report
Current cross currency and interest rate swaps (2) 2 Fair value through profit or loss 165 63
Current other derivative contracts (3) 2, 3 Fair value through profit or loss 60 64
Non-current cross currency and interest rate swaps (2) 2 Fair value through profit or loss 1,414 895
Non-current other derivative contracts (3) 2, 3 Fair value through profit or loss − 1
Total other financial liabilities 1,639 1,023
Trade and other payables (7) Amortised cost 5,354 6,283
Provisionally priced trade payables 2 Fair value through profit or loss 269 277
Bank overdrafts and short-term borrowings (8) Amortised cost − 20
Bank loans (8) Amortised cost 2,492 2,498
Notes and debentures (8) Amortised cost 21,045 21,529 Directors’ Report
Leases liabilities Amortised cost 3,443 715
Other (8) Amortised cost 68 66
Total financial liabilities 34,310 32,411
Non-financial liabilities 18,227 16,626
Total liabilities 52,537 49,037
(1) All of the Group’s financial assets and financial liabilities recognised at fair value were valued using market observable inputs categorised as Level 2 with the exception
of the specified items in the following footnotes. 5
(2) Cross currency and interest rate swaps are measured at forward rate and swap models and present value calculations.
(3) Includes other derivative contracts of US$179 million (2019: US$200 million) categorised as Level 3. Significant items are derivatives embedded in physical commodity
purchase and sales contracts of gas in Trinidad and Tobago with net assets fair value of US$180 million (2019: US$202 million).
(4) Includes investments held by BHP Billiton Foundation which are restricted and not available for general use by the Group of US$296 million (2019: US$309 million)
of which other investment (US Treasury Notes) of US$87 million categorised as Level 1 (2019: US$128 million).
(5) Includes other investments of US$47 million (2019: US$47 million) categorised as Level 3.
(6) Excludes input taxes of US$478 million (2019: US$367 million) included in other receivables. Financial Statements
(7) Excludes input taxes of US$145 million (2019: US$162 million) included in other payables.
(8) All interest bearing liabilities, excluding leases, are unsecured.
The carrying amounts in the table above generally approximate to fair Offsetting financial assets and liabilities
value. In the case of US$3,019 million (2019: US$3,019 million) of fixed The Group enters into money market deposits and derivative
rate debt not swapped to floating rate, the fair value at 30 June 2020 transactions under International Swaps and Derivatives Association
was US$4,114 million (2019: US$3,757 million). The fair value is master netting agreements that do not meet the criteria for
determined using a method that can be categorised as Level 2 and offsetting, but allow for the related amounts to be set-off in certain
uses inputs based on benchmark interest rates, alternative market circumstances. The amounts set out as cross currency and interest
mechanisms or recent comparable transactions. rate swaps in the table above represent the derivative financial assets Additional information
For financial instruments that are carried at fair value on a recurring and liabilities of the Group that may be subject to the above
basis, the Group determines whether transfers have occurred arrangements and are presented on a gross basis.
between levels in the hierarchy by reassessing categorisation at the
end of each reporting period. There were no transfers between
categories during the period. Shareholder information

BHP Annual Report 2020 211