Transurban FY26 Corporate Report Financial statements
Section B: Notes to the Group financial statements for the year ended 30 June 2026
B12 Net finance costs
2026
2025
Note
$M
$M
Finance income Interest income on financial assets at amortised cost Interest income on bank deposits held at amortised cost Net remeasurement gains on derivative financial instruments¹
95 62 12 — 49 16 — — 29
94 68 — 51 — —
Net remeasurement gains on derivative financial instruments designated in fair value hedges² Net remeasurement gains on borrowings designated in fair value hedges² Unwind of discount and remeasurement of financial assets at amortised cost³ Unwind of discount and remeasurement of liabilities—promissory and concession notes Movements in expected credit loss allowance on financial assets at amortised cost
B27
9 1
Net foreign exchange gains Total finance income
—
263
223
Finance costs Interest and finance charges paid/payable
(897)
(811)
Net remeasurement losses on derivative financial instruments¹
—
(23)
Net remeasurement losses on derivative financial instruments designated in fair value hedges² Net remeasurement losses on borrowings designated in fair value hedges² Unwind of discount and remeasurement of financial assets at amortised cost³ Unwind of discount and remeasurement of liabilities—maintenance provision Unwind of discount and remeasurement of liabilities—promissory and concession notes
(54)
—
— —
(57) (11) (39)
B27 B17
(26) (13)
—
Unwind of discount and remeasurement of liabilities—lease liabilities Unwind of discount and remeasurement of liabilities—other liabilities 5
B26
(4) (4)
(5) (8) (4)
Net foreign exchange losses
—
Total finance costs
(998)
(958)
Net finance costs⁴ (735) 1. Relates primarily to gains and losses on derivative financial instruments in cash flow hedges transferred from other comprehensive income (OCI) and derivative financial instruments not designated in hedging relationships. These also include net unrealised gains or losses which arise from changes in the fair value of derivative financial instruments to the extent that hedge accounting is not achieved or is ineffective. The periodic remeasurement of cross-currency interest rate swap contracts to fair value includes an element of foreign currency basis spread. For those cross-currency interest rate swap contracts that designate the entire fair value of the cross-currency interest swap contract as the hedging instrument (including the foreign currency basis spread component), this can result in hedge ineffectiveness recognised in net finance costs. 2. Remeasurement gains of $49 million (2025: $51 million) are offset by remeasurement losses of $54 million (2025: $57 million) resulting in a net remeasurement loss of $5 million (2025:$6 million). 3. Relates to the unwind of discount and remeasurement of shareholder loan notes (SLNs) with STP JV and NWRG (refer to Note B27). 4. In addition to the net finance costs that are included in the profit and loss, $81 million (2025: $175 million) of finance costs have been capitalised and included in the carrying amount of assets under construction (refer to Note B16). 5. Comparative amounts have been reclassified to align with current period presentation. (735)
Interest income on financial assets and bank deposits held at amortised cost accounting policy Interest income on financial assets and bank deposits held at amortised cost is recognised using the effective interest method.
142
Made with FlippingBook Digital Publishing Software