BRITISH COLUMBIA HYDRO AND POWER AUTHORITY
financial-information-act-return-march-31-2016
financial-information-act-return-march-31-2016
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br />
FOR THE YEARS ENDED MARCH 31, 2016 <strong>AND</strong> 2015<br />
British Columbia Hydro and Power Authority<br />
The following table provides a comparison of carrying values and fair values for non-derivative financial<br />
instruments as at March 31, 2016 and 2015. The non-derivative financial instruments, where carrying value<br />
differs from fair value, would be classified as Level 2 of the fair value hierarchy.<br />
Carrying<br />
Value<br />
2016<br />
Fair<br />
Value<br />
Carrying<br />
Value<br />
The carrying value of cash equivalents, loans and receivables, and accounts payable and accrued liabilities<br />
approximates fair value due to the short duration of these financial instruments.<br />
The fair value of derivative instruments designated and not designated as hedges, was as follows:<br />
The carrying value of derivative instruments designated and not designated as hedges was the same as the<br />
fair value.<br />
Fair<br />
Value<br />
2016 2015<br />
Interest Income Interest Income<br />
(Expense) recognized (Expense) recognized<br />
in Finance Charges in Finance Charges<br />
(in millions)<br />
Financial Assets and Liabilities at Fair<br />
Value Through Profit or Loss:<br />
Cash equivalents - short-term investments $ 11 $ 11 $ 11 $ 11 $ 1 $ 1<br />
Loans and Receivables:<br />
Accounts receivable and accrued revenue 669 669 627 627 - -<br />
Non-current receivables 171 171 156 162 7 5<br />
Cash 33 33 28 28 - -<br />
Held to Maturity:<br />
Sinking funds – US 167 194 155 184 8 7<br />
Other Financial Liabilities:<br />
Accounts payable and accrued liabilities (1,816) (1,816) (1,708) (1,708) - -<br />
Revolving borrowings - CAD (1,605) (1,605) (2,623) (2,623) (14) (33)<br />
Revolving borrowings - US (771) (771) (924) (924) (2) -<br />
Long-term debt (including current portion due<br />
in one year)<br />
(15,837) (18,684) (13,329) (16,799) (701) (638)<br />
First Nations liabilities (non-current portion) (378) (547) (391) (758) (17) (9)<br />
Finance lease obligations (non-current portion) (219) (219) (240) (240) (21) (23)<br />
Other liabilities (147) (153) (81) (86) - -<br />
2015<br />
2016 2015<br />
Fair<br />
Fair<br />
Value Value<br />
(in millions)<br />
Derivative Instruments Used to Hedge Risk Associated with Long-term Debt:<br />
Foreign currency contracts (cash flow hedges for $US denominated long-term debt) $ 57 $ 45<br />
Foreign currency contracts (cash flow hedges for €Euro denominated long-term debt) (5) -<br />
52 45<br />
Non-Designated Derivative Instruments:<br />
Foreign currency contracts (34) 31<br />
Commodity derivatives 41 50<br />
7 81<br />
Net asset $ 59 $ 126
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