✨ Financial Statements Notes
4512
NEW ZEALAND GAZETTE
No. 190
TRANSPower NEW ZEALAND LINES BUSINESS
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 1999
(m) Financial Instruments
Derivative financial instruments including foreign exchange contracts, forward rate agreements, foreign exchange options, cross currency interest rate swaps, interest rate swaps and interest rate options are entered into for the purpose of reducing exposure to fluctuations in interest rates and foreign exchange rates. While these financial instruments are subject to the risk that market rates will change subsequent to acquisition, such changes would generally be offset by an opposite effect on the items being hedged.
For interest rate swaps, the differential to be paid or received is accrued as interest rates change and is recognised as a component of interest or expense over the life of the swap. Premiums paid on interest rate options are amortised over the period to maturity. The settlement cash flows on the maturity of forward rate agreements are amortised over the period of the underlying asset or liability that the financial instrument is hedging.
Foreign exchange contracts and cross currency interest rate swaps entered into as hedges of foreign currency assets and liabilities are valued at exchange rates prevailing at balance date. Any unrealised gains and losses are offset against foreign currency gains or losses on the related asset or liability.
Additional information about financial instruments to which the Transpower Lines Business is a party is provided in Note 21.
(n) Reclassifications
Certain reclassifications of prior year balances have been made to conform with current year classifications.
(o) Comparatives
Comparatives have not been restated to comply with the current regulations. As a result where new disclosures are required no comparative numbers have been disclosed. All comparative figures relate to Transpower New Zealand Limited and its subsidiaries and associate (The Transpower Group).
Changes in Accounting Policies
There have been no changes in accounting policies and all policies have been applied on a basis consistent with those used in previous periods, except for those required by the Electricity (Information Disclosure) Regulations 1999.
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VUW Te Waharoa —
NZ Gazette 1999, No 190
NZLII —
NZ Gazette 1999, No 190
✨ LLM interpretation of page content
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Transpower New Zealand Limited Information Disclosure
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🏭 Trade, Customs & IndustryFinancial Instruments, Derivatives, Interest Rate Swaps, Foreign Exchange, Accounting Policies, Reclassifications, Comparatives