✨ Financial Statements
4016 NEW ZEALAND GAZETTE, No. 159 29 NOVEMBER 2010
TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS
17. Other financial liabilities
| 2010 ($000) | 2009 ($000) | |
|---|---|---|
| Current financial liabilities | ||
| Current debt | ||
| Call borrowing | 49,497 | - |
| Current portion of non current debt | 101,604 | 165,535 |
| 151,101 | 165,535 | |
| Derivatives in loss | ||
| Interest rate swaps | 46,152 | - |
| Forward exchange contracts | 30,630 | 2,903 |
| Interest rate options | - | 362 |
| 76,782 | 3,265 | |
| Other financial liabilities | ||
| Hedge commitments | - | 269 |
| Total other current financial liabilities | 227,883 | 169,069 |
| Non current financial liabilities | ||
| Derivatives in loss | ||
| Interest rate swaps | 59,559 | 13,153 |
| 59,559 | 13,153 |
Financial instrument categorisation
Refer to Note 10 Financial Instrument Categorisation for the category of the above instruments.
Derivatives in loss
Derivatives are used to manage financial risk, refer to Note 24 Financial Instruments for information. The loss on derivatives represents the unrealised loss at balance date. The Group anticipates that the derivatives will be held until maturity and it is unlikely that settlement at the reported fair values will occur. Refer Note 11 Other Current Financial Assets for derivatives that are in gain.
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 11 Other Current Financial Assets. 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 & IndustryFinancial liabilities, Derivatives, Hedge commitments, Financial instruments