Airways Annual Report 2019

Airways Corporation of New Zealand Limited Annual Report 2018 2019

NOTES TO THE FINANCIAL STATEMENTS

SECTION A How the numbers are calculated CONTINUED

A5  FINANCIAL ASSETS AND LIABILITIES From 1 July 2018, Airways has adopted NZ IFRS 9, Financial Instruments, using a full retrospective approach. Given the relatively simple financial instruments held by the Group and low credit risk of most Airways customers, the impacts of adopting this standard have been immaterial. Following the adoption of this standard, Airways now classifies all financial assets & liabilities as being measured either at Amortised Cost, Fair Value through Profit or Loss or Fair Value through Other Comprehensive Income (OCI). The table reflects the comparative presentation changes following the adoption of NZ IFRS 9. NZ IAS 39 Classification NZ IFRS 9 Classification FINANCIAL ASSET Cash & Cash Equivalent Loans & Receivables Financial asset at amortised cost Trade & Other receivables Loans & Receivables Financial asset at amortised cost Derivative financial instruments Fair value through OCI Fair value through OCI

CHAIR AND CEO’S REVIEW

INVESTING IN THE FUTURE

INTEGRATING DRONES INTO OUR AIRSPACE

AIRWAYS INTERNATIONAL

FINANCIAL LIABILITY Trade & other payables

Financial liabilities at amortised cost Financial liabilities at amortised cost

Financial liabilities at amortised cost Financial liabilities at amortised cost

SUSTAINABILITY

Employee entitlements

Derivative financial instruments

Fair value through OCI

Fair value through OCI

AIRWAYS BOARD OF DIRECTORS

Borrowings & overdrafts

Financial liabilities at amortised cost

Financial liabilities at amortised cost

Financial liabilities (other than fair value through OCI) are recognised initially at fair value, net of any costs incurred, and subsequently measured at amortised cost using the effective interest method. The carrying value of trade and other payables approximate their fair value. Airways uses forward exchange contracts to hedge expenditure and revenue denominated in foreign currency and interest rate swaps to hedge interest repayments on its term debt. The effective portion of changes in the fair value of hedging instruments is recognised in equity until the underlying transaction being hedged occurs. At this point, the fair value of the hedging instrument deferred in the cash flow hedge reserve is recognised in profit or loss (as interest costs, or foreign currency denominated revenue or expenses as appropriate) or on the balance sheet (within the recognised value of any hedged asset or stock purchase). If the hedged transaction is no longer expected to take place, then the cumulative, unrealised balance recognised in equity is recognised immediately in profit or loss.

FINANCIALS

FINANCIAL PERFORMANCE

PERFORMANCE AND PROGRESS AGAINST SCI METRICS

FINANCIAL STATEMENTS

RISK GROUP STRUCTURE UNRECOGNISED ITEMS OTHER INFORMATION NOTE STRUCTURE HOW THE NUMBERS ARE CALCULATED

AUDIT REPORT

EVA KEY PERFORMANCE INDICATORS

ADDITIONAL FINANCIAL INFORMATION

GOVERNANCE AT AIRWAYS

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