Financial statements
Section B: Notes to the Group financial statements for the year ended 30 June 2024
Section B: Notes to the Group financial statements for the year ended 30 June 2024
B29 Related party transactions (continued) Transactions with related parties (continued) Financial assets and liabilities at amortised cost accounting policies Financial assets and liabilities
The Group measures the SLNs, SLN commitments and loan receivable at fair value on initial recognition. Any difference between the nominal value of these financial instruments, and their fair value at initial recognition is treated as a contribution to the relevant equity accounted investment. For the SLNs and loan receivable financial assets, the Group intends to hold these to maturity, to collect contractual cash flows and these cash flows consist solely of payments of principal and interest on the principal amount outstanding. Therefore, the Group subsequently measures these financial assets at amortised cost using the effective interest method, less expected credit losses. For the SLNs commitments financial liabilities, the Group subsequently measures these financial liabilities at amortised cost using the effective interest method. The amortised cost of the SLNs, loan receivable and SLNs commitments is adjusted to reflect revised estimated contractual cash flows, which are discounted at the original effective interest rate. The adjustment is recognised in the profit and loss, in net finance costs as a remeasurement gain or loss. The SLNs and SLN commitments are not classified as an investment for equity accounting purposes, and therefore have not been affected by equity accounting losses from the joint ventures. Presentation The SLNs and loan receivable financial assets are presented within non-current financial assets in the consolidated balance sheet. The SLN commitments financial liabilities are presented within current other liabilities in the consolidated balance sheet. The SLN commitments and SLNs issued under the same NWRG SLN facility are considered combined financial instruments as the terms of the SLN commitments are integral to the determination of the effective interest rate of the SLNs. These combined financial instruments are presented on a net basis.
The movement of the NWRG and STP JV SLNs, TC loan receivable and NWRG SLN commitments is set out below: NWRG STP JV TC
Total 2023 $'000
2024 $'000
2023 $'000
2024 $'000
2023 $'000
2024 $'000
2023 $'000
2024 $'000
Opening balance at 1 July—Financial assets
572,309
606,104 1,407,309 1,388,564
— — — —
1,889 1,979,618 1,996,557
SLNs and loan issued SLNs and loan repaid
58,868
—
—
—
—
58,868
—
(204,701)
(106,122)
(48,543) 80,023
(50,799) 57,531
(1,962)
(253,244)
(158,883)
Capitalisation of accrued interest
2,671
239
—
82,694
57,770
Unwind of discount and remeasurement of SLNs 2
65,346
72,455
73,530
12,007
— —
— —
138,876
84,462
Change in expected credit losses
225
(367)
(269)
6
(44)
(361)
Foreign exchange movements and other adjustments Closing balance at 30 June—Financial assets Opening balance at 1 July—Financial liabilities Fair value adjustment on recognition of SLN commitments¹
—
—
—
—
—
73
—
73
494,718
572,309 1,512,050 1,407,309
—
— 2,006,768 1,979,618
(21,582)
—
—
—
—
—
(21,582)
—
—
(43,946) 21,250
— — —
— — —
— — —
— — —
—
(43,946) 21,250
SLNs issued
22,132
22,132
Capitalisation of accrued interest
344
302
344
302
Unwind of discount and remeasurement of SLN commitments² Closing balance at 30 June—Financial liabilities
(894)
812
—
—
—
—
(894)
812
—
(21,582)
—
—
—
—
—
(21,582)
1. During FY23, SLN commitments under a new NWRG SLN facility were made. The SLN commitments were recorded at fair value on initial recognition and the difference between the nominal value of the SLN commitments and the fair value was treated as a contribution to the equity accounted investment in NWRG. 2. Includes adjustments from updating the expected timing of cash repayments from the SLNs.
182
181
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