Notes to the financial statements (continued) Section 4: Debt and equity (continued) 19. Lease liabilities (continued) B. Amounts recognised in statement of financial position See table 45 below. C. Amounts recognised in profit or loss See table 46 below. For the reporting year ended 30 June 2025, the total cash outflow for leases was $17 million (30 June 2024: $14 million). D. Critical accounting estimates and judgements: present value of lease liabilities Western Power measures lease liabilities on a present value basis in accordance with the accounting policy in note 19(a). This involves estimation and judgements associated with identifying leases within contracts, lease versus non-lease components including stand-alone prices, lease terms, variable versus fixed lease payments, discount rates and degree of certainty around exercising extensions and/or terminations options. E. Maturity analysis of lease liabilities See table 47 below.
20. Derivative financial instruments A. Accounting policy i. Derivative financial instruments Derivative financial instruments are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value as at each reporting date. The valuation techniques used to measure fair value are further described in note 21(b). Derivative financial instruments are presented as assets when the fair value is positive and as liabilities when the fair value is negative. ii. Hedge accounting For the purpose of hedge accounting, hedges are classified as: • fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or liability, or a firm commitment • cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular risk associated with a recognised asset or liability, or a highly probable forecast transaction. At inception of the hedge relationship, Western Power documents the economic relationship between hedging instruments and hedged items including whether changes in the cash flows of the hedging instruments are expected to offset changes in the cash flows of hedged items. Western Power documents the risk management objective and strategy for undertaking the hedge transactions.
Table 45: Amounts recognised in statement of financial position 2024/25
2023/24
Non- current $M
Non- current $M
Current $M
Total $M
Current $M
Total $M
Lease liabilities
16
24
40
9
17
26
Table 46: Amounts recognised in profit or loss
2024/25 $M
2023/24 $M
Note 6(b)
Finance lease interest
(2)
(1)
Table 47: Maturity analysis of lease liabilities
2024/25 $M
2023/24 $M
Payable within one year Payable later than one year but not later than five years Payable later than five years
15 22 2 39
9 14 2
25
122
Western Power Annual Report 2025
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