✨ Financial Reporting
28 SEPTEMBER
j) Financial Instruments
The group is party to financial instruments with off balance sheet risk to meet financing needs and to reduce exposure to fluctuations in foreign currency exchange rates. These financial instruments include foreign exchange forward contracts, forward rate agreements and swaps.
The group enters into foreign currency forward exchange contracts to hedge foreign currency transactions. Any exposure to gains or losses on these forward contracts is generally offset by a loss or gain on the item being hedged. Gains and losses on contracts which hedge specific short-term foreign currency denominated commitments are recognised as a component of the related transaction in the period in which the transaction is completed. The group is not involved in foreign exchange speculating.
The group is also party to financial instruments with off-balance sheet risk for the primary purpose of reducing its exposure to electricity spot market prices. Assets, liabilities and any unrealised revenues and expenses associated with these electricity price hedging contracts as at balance date are not recognised in the financial statements. Realised revenues and expenses are recognised in the statement of financial performance on maturity of the hedging contracts and are included as part of the cost of wholesale electricity.
k) Joint Ventures
The group is party to several joint venture arrangements. The group has accounted for its interest in these ventures by recognising its share of revenue, expenses, assets and liabilities.
l) Other Investments
Investments in other companies are stated at cost.
m) Long Term Prepayments
The group has entered into several contracts for the supply of gas. These are recorded at cost as long term prepayments.
Changes in Accounting Policies
There have been no changes in accounting policies. All policies have been applied on bases consistent with those used in previous years.
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VUW Te Waharoa —
NZ Gazette 1998, No 160
NZLII —
NZ Gazette 1998, No 160
✨ LLM interpretation of page content
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Mercury Energy Limited Financial Performance Statement
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🏭 Trade, Customs & IndustryFinancial Performance, Electricity, Mercury Energy Limited, Regulations