Annual Report 2010 - Christchurch City Council

Derivative financial
instruments (continued)
Financial statements
Annual Report
Christchurch Otautahi
2010
p179.
Notes to financial statements
15. Derivative financial instruments (continued)
(c) Current liabilities
Parent
Group
30 Jun 10 30 Jun 09 30 Jun 10 30 Jun 09
Actual Actual Actual Actual
$000s $000s $000s $000s
Interest rate swaps - fair value hedges - - 327 272
Interest rate swaps - cash flow hedges - - 485 1,274
Forward foreign exchange contracts - - 271 394
- - 1,083 1,940
(d) Non-current liabilities
Parent
Group
30 Jun 10 30 Jun 09 30 Jun 10 30 Jun 09
Actual Actual Actual Actual
$000s $000s $000s $000s
Interest rate swaps - fair value hedges - - - 2,692
Interest rate swaps - cash flow hedges 9,963 3,861 28,937 17,806
9,963 3,861 28,937 20,498
Total derivative financial instrument liabilities 9,963 3,861 30,020 22,438
Net interest rate swap fair value (8,354) (3,512) (27,748) (20,532)
Net forward foreign contract fair value - - (264) (392)
Net derivative financial instruments fair value (8,354) (3,512) (28,012) (20,924)
On 20 April 2010 Council acquired an interest rate swap which was
novated from Christchurch City Holdings Ltd. At the time of the
transfer the interest rate swap had a value of $2.1 million; it has
since been revalued at 30 June 2010 to a fair value of $3.2 million.
The changes in the fair value of this interest rate swap, including
the initial transfer amount flow through the profit and loss. The
impact can be seen in the gains and losses note 4.