Transurban FY26 Corporate Report Financial statements
Section B: Notes to the Group financial statements for the year ended 30 June 2026
B14 Financial risk management and derivative financial instruments (continued) Effects of hedge accounting on financial position and performance Foreign currency translation reserve As at 30 June 2026, the Group has deferred in equity within foreign currency translation reserve $62 million in losses (2025: $84 million in losses) relating to exchange movements on the revaluation of financial instruments hedging a portion of the net assets of the Group's investment in its US based assets. Borrowings in fair value hedges The table below shows the cumulative amount of fair value hedge adjustments that are included in the carrying amount of borrowings in the balance sheet. 2026 2025 $M $M Principal value 4,504 4,073 Capitalised borrowing costs and unamortised premiums (18) (18) Amortised cost 4,486 4,055 Cumulative fair value hedge adjustments (16) 33 Carrying amount 4,470 4,088 During FY26, the net amount recognised in the profit and loss within net finance costs relating to borrowings in fair value hedges was a gain of $49 million (2025: $57 million loss). This was offset by a loss on associated derivative financial instruments of $54 million (2025: $51 million gain). Hedging reserves The following table presents the gains and losses on the Group’s hedging instruments transferred to and from reserves: 2026 2025 $M $M Cash flow Cash flow
Cost of hedging reserve
Cost of hedging reserve
hedges reserve
hedges reserve
Opening balance as at 1 July
(94)
(39) (16)
(59)
(21) (26)
Change in net fair value of hedging instruments recognised in hedging reserves in OCI Transfers in fair value of hedging instruments from OCI to the profit and loss (net finance costs) for hedge ineffectiveness
(393)
261
(9)
— —
17 10
— —
Transfers related to debt maturities
7
Transfers in fair value of hedging instruments from OCI to the profit and loss (net finance costs) for foreign currency movements¹
621 226
—
(315)
—
Net revaluation - gross
(16)
(27)
(26)
Tax effect on revaluation movements
(68)
5
8
8
Share of hedging reserves of equity accounted investments, net of tax
14 78
—
(16) (94)
—
Closing balance as at 30 June (39) 1. There is no significant impact on the profit and loss from foreign currency movements associated with the borrowings portfolio that are swapped to Australian dollars as an offsetting entry will be recognised on the associated hedging instrument. $621 million represents unrealised losses transferred (2025: $315 million unrealised gains) relating to foreign currency revaluation of the principal component of cross-currency interest rate swaps that offsets the unrealised foreign currency revaluation of the principal value of hedged foreign denominated borrowings. (50)
152
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