✨ Financial Statements Notes
30 NOVEMBER
NEW ZEALAND GAZETTE
3991
TRANSPower NEW ZEALAND LIMITED LINES BUSINESS
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2001
- FINANCIAL INSTRUMENTS continued
(d) Maximum credit risk exposure
The maximum credit exposure to which Transpower is subject is best measured by
the net cash settlement amount receivable from the counterparty for cross currency
interest rate swaps, foreign exchange forward contracts, interest rate swaps
and the market value of interest rate options, foreign currency options and forward
rate agreements.
Where the net interest accrued on interest rate swaps represents a payable or the
current market value of interest rate options, foreign currency options and forward
rate agreements represents a loss, Transpower is not subject to credit risk on these
instruments at balance date.
LINES BUSINESS LINES BUSINESS
2001 2000
$000 $000
Net cash settlement amount receivable
Cross currency interest rate swaps 92,541 120,695
Foreign exchange forward contracts 51 307
Interest rate swaps 1,740 2,063
Current market value
Interest rate options - 121
Foreign currency options - -
Forward rate agreements - 12
The credit risk arising from the use of derivative products is minimised by the netting and
set-off provisions of the documentation and the application of applicable law. The Group
further manages this risk by only entering into transactions with counterparties that fall within
Transpower's credit risk management policy as outlined in section (b) Risk management policies, of
this note.
(e) Carrying value and fair value
Carrying value
For off balance sheet financial instruments the carrying value in the Carrying/Fair Value table below is
taken from the other receivables and other liabilities categories in the Statement of Financial Position
as appropriate. The carrying values represent the results of accounting for these instruments, as
described in the Statement of Accounting Policies. The unrealised foreign currency gains and losses
on cross currency interest rate swaps are included in the carrying value of debt.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2001, No 163
Gazette.govt.nz —
NZ Gazette 2001, No 163
✨ LLM interpretation of page content
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Transpower New Zealand Limited Lines Business Financial Position
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statements, Financial Risks, Interest Rate Risk, Currency Risk, Credit Risk, Liquidity Risk, Debt Facilities, Term Investments, Interest Rate Swaps