✨ Financial Liabilities and Derivatives
27 NOVEMBER 2009 NEW ZEALAND GAZETTE, No. 172 4179
TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS
16. Other current financial liabilities
| | LINES BUSINESS |
|-----------------------------|---------------|---------------|
| | 2009 | 2008 |
| | $000 | $000 |
Current debt
Call borrowing | | - |
Current portion of non current debt | 165,535 | 153,713 |
| 165,535 | 153,713 |
Derivatives in loss
Cross currency interest rate swaps | 53,988 | 16,391 |
Forward exchange contracts | 2,903 | 69 |
Interest rate options | 362 | 112 |
| 57,253 | 16,572 |
Hedge commitments | 269 | - |
Total other current financial liabilities| 223,057 | 170,285 |
Financial Instrument Designation
Refer to Note 9 Financial Instrument Designation for the designation of the above instruments.
Derivatives in loss
Derivatives are used to manage financial risk; refer to Note 23 Financial Instruments for information. The loss on derivatives represents the unrealised loss 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 10 Other Current Financial Assets for derivatives that are in gain.
The Lines Business hedges against foreign currency fluctuations on certain foreign purchases through the use of forward exchange contracts. These contracts are hedge accounted using the fair value method. The hedge commitment is shown separately in Note 10 Other Current Financial Assets.
Hedge Commitments
Transpower 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 10 Other Current Financial Assets. Although all forward exchange contracts are used for reducing foreign currency exposure on foreign purchases, not all forward exchange contracts qualify for hedge accounting.
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NZ Gazette 2009, No 172
✨ LLM interpretation of page content
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Transpower New Zealand Limited Financial Instrument Designation
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💰 Finance & RevenueFinancial instruments, Investments, Derivatives, Hedge commitments, Impairment losses, Property, Plant, Equipment, Lines Business, HVDC Transmission Lines, HVAC Transmission Lines, HVAC Substations, HVDC Substations and Submarine Cables, Communications, Capital work in progress, Net book value, Cost, Accumulated depreciation, Additions, Disposals, Transfers, Depreciation, Trade payables, Employee entitlements, External finance leases