Air New Zealand 2015 Annual Report Download - page 33

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Notes to the Financial Statements (continued)
As at 30 June 2015
Air New Zealand Annual Financial Results 2015 31
23. Financial Risk Management (continued)
Impact of hedging foreign currency risk
The impact of the foreign currency hedging strategies (both hedge accounted and non hedge accounted) on the financial statements during the
year is set out below, by type of hedge.
CASH FLOW HEDGES OF FOREIGN CURRENCY RISK
Forecast operating revenue and expenditure transactions are not recognised in the financial statements until the transactions occur. The amounts
designated as the hedged item in qualifying cash flow hedges mirror the amounts designated as hedging instruments as set out below. All hedges
are at a spot foreign exchange risk.
The following foreign currency derivatives were recognised within ‘Derivative financial instruments’ on the Statement of Financial Position as at
reporting date and were designated as the hedging instrument in qualifying cash flow hedges of highly probable forecast operating revenue and
expenditure transactions. All derivatives mature within 12 months (30 June 2014: $1 million within 13 months).
2015
NZ$M
2014
NZ$M
Hedging instruments used
Derivative financial instruments
NZD
USD
AUD
EUR
JPY
GBP
OTHER
(276)
885
(165)
(46)
(182)
(85)
(80)
(500)
1,009
(260)
(61)
(49)
(95)
(83)
Hedge accounted foreign currency derivatives 51 (39)
The following interest-bearing liabilities were recognised within ‘Interest-bearing liabilities’ on the Statement of Financial Position as at reporting
date and were designated as the hedging instrument in qualifying cash flow hedges of highly probable forecast USD sales of non financial assets
and highly probable forecast JPY operating revenue expected to occur in the time periods shown.
< 1 YEAR
$M
1-2 YEARS
$M
2-5 YEARS
$M
5+ YEARS
$M
TOTAL
$M
Interest-bearing liabilities
As at 30 June 2015
USD
JPY
(3)
(15)
-
(15)
-
(47)
-
(173)
(3)
(250)
As at 30 June 2014
USD
JPY
(10)
(13)
(2)
(14)
-
(43)
-
(147)
(12)
(217)