✨ Financial Risk Disclosures
Maximum exposures to credit risk as at balance date are:
| 1998 | 1997 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Line Activities | Electricity Generation Activities | Retailing Activities | Other Activities | Total Activities | Line Activities | Electricity Generation Activities | Retailing Activities | Other Activities | Total Activities | |
| $000 | $000 | $000 | $000 | $000 | $000 | $000 | $000 | $000 | $000 | |
| Bank balances | 390 | 377 | (279) | 824 | 1,312 | 630 | 647 | 767 | 3,410 | 5,454 |
| Accounts receivable | 19,190 | 51,267 | 2,301 | 3,248 | 76,006 | 1,173 | 37,619 | 4 | 3,589 | 42,385 |
| Foreign exchange contracts | - | - | - | 2,788 | 2,788 | - | - | - | 17,619 | 17,619 |
The above maximum exposures are net of any recognised provision for losses on these financial instruments. Collateral in respect of customer bonds totalling $1,323 million (1997: $1,356 million) is held in respect of the above amounts.
Concentrations of Credit Risk
| Bank balances | 390 | 377 | (279) | 824 | 1,312 | 630 | 647 | 767 | 3,410 | 5,454 |
| | | | | | | | | | | |
The group is not exposed to any other concentrations of credit risk.
Foreign exchange contracts
At balance date the group entered into foreign exchange contracts maturing during 1998 to purchase the equivalent of NZ$2,788 million (1997: $17,619 million) in foreign currency.
Interest rate risk
Interest rates on debt issued in the current year are generally fixed for periods of between one and three months at rates from 7.1% to 10.3% (1997: 7.4% to 8.8%). The interest rates are based on the BkBM rate plus a margin.
Interest rates on debt issued prior to 1 October 1993 is fixed until maturity at a rate of 6.3% (1997: 5.8% to 11.7%).
Fair values
The following methods and assumptions were used to estimate the fair value of each class of financial instrument:
Accounts receivable, bank balances, money market deposits, accounts payable, short term liabilities, long term liabilities, investments (except listed equities).
The carrying amount is the fair value for each of these classes of financial instrument and accordingly they are excluded from the table below.
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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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Financial Instruments Notice
(continued from previous page)
💰 Finance & Revenue28 September 2026
Financial Instruments, Revenue, Electricity Price Hedging, Credit Risk, Foreign Exchange Contracts, Interest Rate Risk, Fair Values