✨ Financial Statements
29 NOVEMBER 2010 NEW ZEALAND GAZETTE, No. 159 4009
TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS
11. Other current financial assets
| LINES BUSINESS | |
|---|---|
| 2010 | |
| $000 |
Investments
Other investments 680 23,572
Derivatives in gain
Basis swaps - 240
Interest rate swaps - 1,420
1,660
Other financial assets
Hedge commitments 29,515 -
29,515
Total other current financial assets 30,195 24,992
Financial Instrument Categorisation
Refer to Note 10 Financial Instrument Categorisation for the category of the above instruments.
Investments
Investments are made in financial instruments in accordance with levels set out in note 24(b) Financial Instruments. The Lines Business does not hold any equity investments.
Derivatives in Gain
Derivatives are used to manage financial risk, refer to Note 24 Financial Instruments for further information. The gain on derivatives represents the unrealised gain at balance date. The Transpower 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 17 Other Financial Liabilities for derivatives that are in loss.
Hedge Commitments
The Transpower 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 17 Other Financial Liabilities. Although all forward exchange contracts are used for economically hedging foreign purchases, not all forward exchange contracts are hedge accounted.
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NZ Gazette 2010, No 159
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Transpower New Zealand Limited Financial Statements
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🏭 Trade, Customs & Industry19 November 2010
Financial statements, Financial instruments, Fair value, Hedge accounting, Bonds, Derivatives