Landcorp - Crown Ownership Monitoring Unit

LANDCORP FARMING LIMITED AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTS CONTINUEDNote 26 – Other Financial Assets and LiabilitiesGroup Group Parent Parent2010 2009 2010 2009$000 $000 $000 $000Other Financial AssetsExternal Financial AssetsAvailable-for-sale financial assetsShare investments 43,547 41,781 30,950 29,753Internal Financial AssetsShares in subsidiaries – – 164,404 149,458Loans to subsidiaries – – 54,713 73,913Total Other Financial Assets 43,547 41,781 250,067 253,124Other Financial LiabilitiesFinancial liabilities measured at amortised costBank loans 149,400 181,800 149,400 181,800Held-for-trading financial liabilitiesInterest rate derivatives 10,642 7,306 10,642 7,306Commodity derivatives 35 – 35 –Financial guaranteesFinancial guarantees – – – –Total Other Financial Liabilities 160,077 189,106 160,077 189,106Financial assets and liabilities are classified according to NZ IFRS criteria, the names of which may not reflect Landcorp’s intent for holding theassets and/or liabilities.Landcorp’s external share investments are largely in cooperative and processing companies where shareholding is required to supply thatcompany and/or to facilitate normal farming operations. As such, the Group is normally unable to sell these investments and continue theGroup’s business operations.Derivative financial instruments are used by the Group to hedge interest rate, foreign exchange and commodity risks. Landcorp has elected not touse hedge accounting, which, under NZ IFRS, requires all derivative financial instruments to be classified as held-for-trading. Landcorp’s financialmanagement policies explicitly prohibit trading in financial instruments.Financial risk management strategies relating to financial assets and liabilities are discussed in Note 36.A – Revaluation of Financial InstrumentsGroup Group Parent Parent2010 2009 2010 2009$000 $000 $000 $000Recognised in Profit and LossRevaluation of held-for-trading financial instruments (5,325) (8,049) (5,325) (8,049)Total Recognised in Profit and Loss (5,325) (8,049) (5,325) (8,049)Recognised directly in equityRevaluation of available-for-sale financial instruments (86) (7,112) (106) (4,886)Total Recognised Directly in Equity (86) (7,112) (106) (4,886)Total Gain/Loss on Revaluation (5,411) (15,161) (5,431) (12,935)76