Endeavour Energy Annual Performance Report - Parliament of New ...
Endeavour Energy Annual Performance Report - Parliament of New ...
Endeavour Energy Annual Performance Report - Parliament of New ...
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09<br />
Financial<br />
statements<br />
Notes to the Financial Statements<br />
For the year ended 30 June 2011<br />
21 Financial Instruments continued<br />
(h) Hedge accounting – cash flow hedges<br />
At sale completion date (1 March 2011), <strong>Endeavour</strong> <strong>Energy</strong> ceased hedge accounting for electricity derivatives as the<br />
derivatives and underlying transactions were sold to Origin <strong>Energy</strong> as part <strong>of</strong> the sale <strong>of</strong> the Retail business. On that<br />
date, the balance <strong>of</strong> the hedge reserve was recognised in the Statement <strong>of</strong> Comprehensive Income, as detailed in the<br />
movement schedule below. The remaining balance relates to Treasury derivative transactions hedge accounted for the<br />
first time in 2011.<br />
Movement in swaps and futures contract cash flow hedge reserve (net <strong>of</strong> tax)<br />
2011<br />
$’000<br />
2010<br />
$’000<br />
Opening balance (57,941) (35,914)<br />
Amounts recognised in equity 3,940 (18,766)<br />
Amounts removed from equity and recognised in Statement <strong>of</strong> Comprehensive Income 52,872 (3,261)<br />
Closing balance (1,129) (57,941)<br />
The above movements do not reconcile to the Statement <strong>of</strong> Comprehensive Income due to the tax impact as<br />
disclosed in note 6(c).<br />
22 Contingent Liabilities and Contingent Assets<br />
(a) Contingent Liabilities<br />
2011<br />
$’000<br />
2010<br />
$’000<br />
Self Insurance – 2,836<br />
Sundry General Claims 1,590 5,200<br />
Total contingent liabilities 1,590 8,036<br />
The Directors are <strong>of</strong> the opinion that provisions are not required in respect <strong>of</strong> these matters, as it is not probable<br />
that a future sacrifice <strong>of</strong> economic benefits will be required or the amount is not capable <strong>of</strong> reliable measurement.<br />
The contingent liabilities relate to injury claims (self insurance) and sundry general claims. The Directors do not<br />
expect the outcome <strong>of</strong> any actions associated with the above contingent liabilities to have a material effect on the<br />
Corporation’s financial position.<br />
23 expenditure Commitments<br />
(a) Operating Expenditure Commitments<br />
2011<br />
$’000<br />
2010<br />
$’000<br />
Estimated operating expenditure contracted for at reporting date, but not provided for:<br />
Within one year 116,614 187,081<br />
After one year but not more than five years 94,150 485,418<br />
More than five years 68,721 196,358<br />
Total operating expenditure commitments 279,485 868,857<br />
88