✨ Financial Statements
28 NOVEMBER 2008 NEW ZEALAND GAZETTE, No. 186 4879
TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS
10. Other current financial assets
| | LINES BUSINESS |
|-------------------------------------|----------------|----------------|
| | 2008 | 2007 |
| | $\000$ | $\000$ |
Investments
Other investments | 99,569 | 65 |
Derivatives in gain
Interest rate swaps | 77,410 | 102,038 |
Other financial assets
Structured finance transaction assets | 526,297 | - |
Hedge commitments | 172 | 3,631 |
| 172 | 529,928 |
Total other current financial assets | 177,151 | 632,031 |
Impairment Losses on Financial Assets
No impairment losses were incurred in the 2008 period (2007: nil).
Financial Instrument Designation
Refer to Note 9 Financial Instrument Designation for the designation of the above instruments.
Investments
Other investments are short term money-market investments used for funding purposes.
Derivatives in Gain
Derivatives are used to manage financial risk; refer to Note 23 Financial Instruments for information. The gain on derivatives represents the unrealised gain at balance date. The Lines Business anticipates that the derivatives will be held until maturity, and it is unlikely that settlement at the reported fair values will occur. Refer Note 16 Other Current Financial Liabilities for derivatives that are in loss.
Structured Financing Transaction Assets
The structured financing transaction assets are discussed in Note 19 Non Current Debt.
Hedge Commitments
The Lines Business hedges against foreign currency fluctuations on certain foreign purchases through the use of forward exchange contracts. The "hedge commitment" represents the non derivative fair value movement on the commitment to buy the goods, i.e. before the goods or an invoice are received. The fair value of the derivative (forward exchange contract) is shown separately in Note 16 Other Current Financial Liabilities.
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NZ Gazette 2008, No 186
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Transpower New Zealand Limited Lines Business Financial Statements
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