Air New Zealand 2016 Annual Report Download - page 33

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Notes to the Financial Statements (continued)
As at 30 June 2016
31
AIR NEW ZEALAND GROUP
24. 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 of 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 2015: 12 months).
2016
NZ$M
2015
NZ$M
Hedging instruments used
Derivative financial instruments
NZD
USD
AUD
EUR
JPY
GBP
Other
(584)
928
(156)
(39)
(43)
(61)
(69)
(276)
885
(165)
(46)
(182)
(85)
(80)
Hedge accounted foreign currency derivatives (24) 51
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 JPY and EUR operating revenue and highly
probable forecast USD sales of non-financial assets expected to occur in the time periods shown.
< 1 YEAR
NZ$M
1-2 YEARS
NZ$M
2-5 YEARS
NZ$M
5+ YEARS
NZ$M
TOTAL
NZ$M
Interest-bearing liabilities
As at 30 June 2016
EUR
JPY
(6)
(48)
(6)
(49)
(17)
(134)
(30)
(345)
(59)
(576)
As at 30 June 2015
USD
JPY
(3)
(15)
-
(15)
-
(47)
-
(173)
(3)
(250)