Rangatira Investments Annual Report 2021 - Report - Page 54
Ran ga tira Annua l R ep or t 2 0 2 1
Notes to the Consolidated
Financial Statements (continued)
For the year ended 31 March 2021
Note 13 Borrowings and Other Financial Liabilities (continued)
(B) OTHER FINANCIAL LIABILITIES
The Group enters into derivative financial instruments to manage its exposure to foreign currency risk and interest rate risk, including
forward exchange contracts and interest rate swaps.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to
their fair value at each reporting date.
The Group does not hedge account for its derivatives.
Foreign currency forward contracts
Note 14 Provisions
The provision for employee benefits represents the present value of the Directors’ best estimate of the future cost of economic
benefits that will be required in the next 12 months for payment of employee entitlements, such as outstanding annual leave, long
service leave and collective agreement payments. This estimate has been made on the basis of future expected wage rates for the
forthcoming 12 month period.
The provision for make good is the Directors’ best estimate of the future cost to make good any damage to the land in removing any
movable fixtures at the expiration of the lease.
Employee benefits - current
Make good on lease - current
Make good on lease - non-current
Other current provisions