NOTES TO THE FINANCIAL STATEMENTS
21. Derivatives and hedge accounting:// CONTINUED 21.1 Effects of hedge accounting on the financial position and performance The tables below demonstrate the impact of hedged items and the hedging instruments designated in hedging relationships:
HEDGING (GAIN) OR LOSS RECOGNISED IN CASH FLOW HEDGE RESERVE $000
(GAIN) OR LOSS RECOGNISED IN COST OF HEDGING $000
CARRYING AMOUNT ASSETS/ (LIABILITIES) $000
CHANGE IN FAIR VALUE USED FOR MEASURING INEFFECTIVENESS $000
HEDGE INEFFECTIVENESS RECOGNISED IN PROFIT OR LOSS $000
WEIGHTED AVERAGE RATE
Cash flow hedges 2017
FACE VALUE $000
Interest risk Hedged item: NZD floating rate exposure on borrowings Hedging instrument: Interest rate swaps Interest and exchange risk Hedged item: GBP fixed rate exposure on borrowings Hedging instrument: Cross currency swaps
(1,000,000)
(52,842)
(1,420,000)
5.0% (51,875)
(51,875)
51,875
–
–
(285,614)
(96,315)
(285,614)
10.8% (93,954)
(94,679)
13,364
– –
(725)
Total
HEDGING (GAIN) OR LOSS RECOGNISED IN CASH FLOW HEDGE RESERVE $000
(GAIN) OR LOSS RECOGNISED IN COST OF HEDGING $000
CARRYING AMOUNT ASSETS/ (LIABILITIES) $000
CHANGE IN FAIR VALUE USED FOR MEASURING INEFFECTIVENESS $000
HEDGE INEFFECTIVENESS RECOGNISED IN PROFIT OR LOSS $000
WEIGHTED AVERAGE RATE
Cash flow hedges 2016
FACE VALUE $000
Interest risk Hedged item: NZD floating rate exposure on borrowings Hedging instrument: Interest rate swaps Interest and exchange risk Hedged item: GBP fixed rate exposure on borrowings Hedging instrument: Cross currency swaps
(1,160,000)
(110,817)
(1,430,000)
5.5% (106,380)
(106,380)
106,380
–
–
(285,614)
(92,161)
(285,614)
10.8% (86,198)
(87,964)
16,923
– –
(1,766)
Total
The NZD floating rate exposure includes $750.0 million from the floating rate notes (2016: $910.0 million) and $250.0 million arising from hedging the USD senior bonds (2016: $250.0 million), as allowable under NZ IFRS 9. The interest rate swaps include $420.0 million of forward starting swaps (2016: $270.0 million).
106
Vector://AR 17
Made with FlippingBook Annual report