28. Financial Instruments (Continued) (b) Categories of Financial Instruments The carrying amounts of Delta Electricity’s financial instruments are outlined in the following table: Consolidated
Parent Entity
2011
2010
2011
2010
$’000
$’000
$’000
$’000
Cash and Cash Equivalents
237,771
89,569
237,771
87,360
Loans and Other Receivables
140,054
117,853
140,054
117,481
Finance Lease Receivables
461,665
-
461,665
-
17,673
87,074
17,673
87,074
247,321
1,840
247,321
1,840
1,104,484
296,336
1,104,484
293,755
973,870
1,413,847
973,870
1,344,353
99,128
101,329
99,128
101,329
442
5
442
5
237,021
38,400
237,021
36,346
1,310,461
1,553,581
1,310,461
1,482,033
Financial Assets
Derivative Instruments – Designated in Hedge Accounting Relationships Derivative Instruments – Held for Trading
Financial Liabilities Payables and Other Borrowings Finance Lease Payable Derivative Instruments – Designated in Hedge Accounting Relationships Derivative Instruments – Held for Trading
Delta Electricity has a number of electricity contract financial assets and liabilities awaiting novation. Delta Electricity continues to hold legal title to these contracts, remains as principal to the contracts and is exposed to settlement, liquidity and credit risk. An agreement is in place to facilitate pass through of the economic benefits of these contracts. The value of financial assets subject to this agreement is $62,654,000 (2010: $nil). An associated financial liability of $62,654,000 (2010: $nil) has been recognised.
(c) Financial Risk Management Objectives Delta Electricity’s activities expose the organisation to a variety of financial risks including market risk (currency, interest and price risk), credit risk and liquidity risk. The organisation aims to minimise the effects of these risks by using a range of derivative financial instruments. The use of financial instruments is governed by Board approved policies which are reviewed annually or as required. Compliance with policies is reviewed on a continuous basis and is subject to routine audit. Delta Electricity does not enter into or trade financial instruments for speculative purposes.
DELTA ELECTRICITY ANNUAL REPORT 2010 - 2011
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