Air New Zealand 2015 Annual Report Download - page 40

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AIR NEW ZEALAND GROUP
Notes to the Financial Statements (continued)
As at 30 June 2015
38
24. Offsetting Financial Assets and Financial Liabilities
Financial assets and financial liabilities are offset and the net amount reported in the Statement of Financial Position when there is
a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and
settle the liability simultaneously.
Amounts subject to offset
The following table shows the net amounts as recognised in the Statement of Financial Position, together with the gross amounts prior to offset.
STATEMENT
OF FINANCIAL
POSITION
2015
$M
AMOUNTS
OFFSET
2015
$M
GROSS
AMOUNTS
BEFORE
OFFSET
2015
$M
STATEMENT
OF FINANCIAL
POSITION
2014
$M
AMOUNTS
OFFSET
2014
$M
GROSS
AMOUNTS
BEFORE
OFFSET
2014
$M
Financial assets
Bank and short term deposits
Trade and other receivables
1,321
420
7
8
1,328
428
1,234
404
5
6
1,239
410
Financial liabilities
Bank overdraft
Trade and other payables
-
(448)
(7)
(8)
(7)
(456)
-
(398)
(5)
(6)
(5)
(404)
Amounts subject to potential offset
For financial instruments subject to enforceable master netting arrangements, each agreement allows the parties to elect net settlement of the
relevant financial assets and liabilities. In the absence of such election, settlement occurs on a gross basis, however each party will have the option
to settle on a net basis in the event of default of the other party.
The following table shows the gross amounts of financial assets and financial liabilities which are subject to enforceable master netting arrangements
and similar agreements, as recognised in the Statement of Financial Position. It also shows the potential net amounts if offset were to occur.
STATEMENT
OF FINANCIAL
POSITION
2015
$M
AMOUNTS
NOT OFFSET
2015
$M
NET
AMOUNTS
IF OFFSET
2015
$M
STATEMENT
OF FINANCIAL
POSITION
2014
$M
AMOUNTS
NOT OFFSET
2014
$M
NET
AMOUNTS
IF OFFSET
2014
$M
Financial assets
Bank and short term deposits
Derivative financial assets
1,321
106
(23)
(18)
1,298
88
1,234
30
(53)
(5)
1,181
25
Financial liabilities
Derivative financial liabilities (41) 41 - (58) 58 -
Letters of credit and performance bonds are also subject to master netting arrangements. The amounts are disclosed in Note 22
Contingent Liabilities.