Notes to the financial statements (continued) Section 4: Debt and equity (continued) 23. Hedging reserve and retained earnings A. Accounting policy The hedging reserve represents the effective portion of the cumulative net changes in the
fair value of derivative financial instruments that are designated, and qualify as cash flow hedges in accordance with the accounting policy in note 20(a). Amounts are re-classified to profit or loss when the associated hedge transaction affects profit or loss. B. Movements in hedging reserve Movements in the hedging reserve during the reporting years presented, are shown in table 52 below.
Table 52: Movements in hedging reserve
Forward domestic borrowing commitments $M
Interest rate swaps $M
Forward exchange contracts $M
Total $M
Note
At 1 July 2024
23
(1)
(29)
(7)
Other comprehensive income or loss for the reporting year: Fair value of cash flow hedges Changes in the fair value of cash flow hedges Re-classifications of cash flow hedges to profit or loss Re-classifications of cash flow hedges not to profit or loss Total fair value of cash flow hedges Tax equivalent on fair value of cash flow hedges Tax equivalent on changes in the fair value of cash flow hedges Tax equivalent on re-classifications of cash flow hedges to profit or loss Tax equivalent on re-classifications of cash flow hedges not to profit or loss Total tax equivalent on fair value of cash flow hedges Total other comprehensive income/(loss) for the reporting year
(44) - - (44) 16 (3) -
- - - - - - - - -
(10) 9 -
(54) 9 - (45) 16 (3) -
6(b)
(1) - - -
7(d)
13
-
13
(31)
(1)
(32)
At 30 June 2025 At 1 July 2023
(8)
(1)
(30) (39)
32
1
(38)
(5)
Other comprehensive income for the reporting year Fair value of cash flow hedges Changes in the fair value of cash flow hedges Re-classifications of cash flow hedges to profit or loss Re-classifications of cash flow hedges not to profit or loss Total fair value of cash flow hedges Tax equivalent on fair value of cash flow hedges Tax equivalent on changes in the fair value of cash flow hedges Tax equivalent on re-classifications of cash flow hedges to profit or loss Tax equivalent on re-classifications of cash flow hedges not to profit or loss Total tax equivalent on fair value of cash flow hedges Total other comprehensive income for the reporting year
(13) - - (13) 4
(4) - 2 (2) 1 - (1)
3 10 -
(14) 10 2
6(b)
(2) 4 (3) (1)
13 (1) (3) -
7(d)
- -
4
-
(4)
-
(9)
(2)
9 (2)
At 30 June 2024
23
(1)
(29)
(7)
Western Power Annual Report 2025
127
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