2011-2012 Annual Report - Full Version - PDF - Palmerston North ...

Sensitivity analysisThe tables below illustrate the potential effect on surplus or deficit and equity (excluding retained earnings)for reasonably possible market movements, with all other variables held constant, based on PNCC’s financialinstrument exposures at balance date. For interest rate movement the potential effect assumes a fullyear movement.2012 2011$000 $000 $000 $000 $000 $000 $000 $000-100bp +100bp -100bp +100bpCOUNCIL Profit Equity Profit Equity Profit Equity Profit EquityINTEREST RATE RISKFinancial assetsInvestment fund NZsecurities and bonds 479 - (462) - 387 - (376) -Derivatives - held for trading 643 - (613) - 998 - (869) -Financial liabilitiesSecured loans 419 - (419) - 412 - (412) -Derivatives - held for trading (4,631) - 4,335 - (4,380) - 3,682 -Financial Statements Note 34Total sensitivity tointerest rate risk (3,090) - 2,841 - (2,583) - 2,025 --10% +10% -10% +10%Profit Equity Profit Equity Profit Equity Profit EquityFOREIGN EXCHANGE RISKFinancial assetsOther financial assets- quoted share investments 644 - (528) - 711 - (583) -Total sensitivity toforeign exchange risk 644 - (528) - 711 - (583) -EQUITY PRICE RISKFinancial assetsOther financial assets- quoted share investments (580) - 580 - (641) - 641 -Unlisted shares (49) - 49 - (27) - 27 -Total sensitivity toequity price risk (629) - 629 - (668) - 668 -186Palmerston North City Council Annual Report 2011/12