Transurban Corporate Report FY25 Financial statements
Section B: Notes to the Group financial statements for the year ended 30 June 2025
B14 Financial risk management and derivatives (continued) Effects of hedge accounting on financial position and performance Hedging reserves The following table presents the gains and losses on the Group’s hedging instruments transferred to and from reserves: 2025
2024
$M
$M
Cash flow
Cash flow
Cost of hedging reserve
Cost of hedging reserve
hedges reserve
hedges reserve
Opening balance as at 1 July
(59)
(21) (26)
(89)
4
Change in net fair value of derivatives recognised in hedging reserves in OCI
261
(7)
(36)
Transfers in fair value of hedging instruments from OCI to the profit and loss (net finance costs) for hedge ineffectiveness
17 10
— —
(46)
— —
Transfers related to debt maturities
—
Transfers in fair value of hedging instruments from OCI to the profit and loss (net finance costs) for foreign currency movements¹
(315)
—
101
—
Net revaluation - gross
(27)
(26)
48
(36)
Tax effect on revaluation movements
8
8
(15)
11 —
Share of hedging reserves of equity accounted investments, net of tax
(16) (94)
—
(3)
Closing balance as at 30 June (21) 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. $315 million represents unrealised gains transferred (2024: $101 million unrealised losses) 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. Foreign currency translation reserve (39) (59) As at 30 June 2025, the Group has deferred in equity within foreign currency translation reserve $84 million in losses (2024: $74 million in losses) relating to exchange movements on the revaluation of financial instruments hedging a portion of the net assets of the Group's investments in its US and Canadian 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. 2025 2024 $M $M Principal value 4,073 1,614 Capitalised borrowing costs and unamortised premiums (18) (10) Amortised cost 4,055 1,604 Cumulative fair value hedge adjustments 33 (24) Carrying amount 4,088 1,580 During FY25 the net amount recognised in the profit and loss within finance costs relating to borrowings in fair value hedges was a loss of $57 million (2024: $24 million gain). This was offset by a gain on associated derivative financial instruments of $51 million (2024: $37 million loss).
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