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(a) Analysis of financial instruments

Financial instruments are measured at either fair value or amortised cost. Financial instruments measured at fair value are further classified into three designations; available for sale, held for trading and fair value through profit and loss. Changes in the value of an instrument may be reported in the operating balance or directly in net worth depending on its designation. The following table details the value of financial assets and financial liabilities by class of instrument and by designation category, as defined in the accounting policies in note 1.

Financial Assets

Financial Assets
Financial assets as at 30 June 2012 Designation
Note Amortised
cost 		Available
for sale 		Held for
trading 		Fair value
through P&L 		Total
  $m $m $m $m $m
Cash and cash equivalents 10,686 -  -  -  10,686
Trade and other receivables 14 9,660 -  -  -  9,660
Long-term deposits 15 2,258 -  -  164 2,422
Derivatives in gain 15 -  -  5,032 -  5,032
Marketable securities 15 -  505 130 38,047 38,682
IMF financial assets 15 2,249 -  -  -  2,249
Share investments 16 26 100 -  14,259 14,385
Student loans 17 8,291 -  -  -  8,291
Kiwibank mortgages 17 12,401 -  -  44 12,445
Other advances 17 790 50 -  190 1,030
Total financial assets 46,361 655 5,162 52,704 104,882
Financial Assets (continued)
Financial assets as at 30 June 2011 Designation
Note Amortised
cost 		Available
for sale 		Held for
trading 		Fair value
through P&L 		Total
  $m $m $m $m $m
Cash and cash equivalents 9,801 -  -  -  9,801
Trade and other receivables 14 9,927 -  -  -  9,927
Long-term deposits 15 2,099 -  -  160 2,259
Derivatives in gain 15 -  -  5,415 -  5,415
Marketable securities 15 -  547 328 38,339 39,214
IMF financial assets 15 2,168 -  -  -  2,168
Share investments 16 30 73 -  14,145 14,248
Student loans 17 7,460 -  -  -  7,460
Kiwibank mortgages 17 11,047 -  -  448 11,495
Other advances 17 1,367 46 -  199 1,612
Total financial assets 43,899 666 5,743 53,291 103,599

As at 30 June 2012, the carrying value of financial assets that had been pledged as collateral was $1,512 million (2011: $1,100 million). These transactions are conducted under terms that are usual and customary to standard securities borrowing.

Financial Liabilities

Financial Liabilities
Financial liabilities as at 30 June 2012 Designation
Note Amortised
cost 		Held for
trading 		Fair value
through P&L 		Total
  $m $m $m $m
Issued currency 4,457 -  -  4,457
Accounts payable 23 8,255 -  -  8,255
Borrowings: 24        
     Government stock 50,061 -  2,834 52,895
     Treasury bills 8,557 -  397 8,954
     Government retail stock 229 -  -  229
     Settlement deposits with Reserve Bank -  -  5,917 5,917
     Derivatives in loss -  2,807 -  2,807
     Finance lease liabilities 1,515 -  -  1,515
     Other borrowings 22,106 189 5,922 28,217
Total borrowings 82,468 2,996 15,070 100,534
Total financial liabilities 95,180 2,996 15,070 113,246
Financial Liabilities (continued)
Financial liabilities as at 30 June 2011 Designation
Note Amortised
cost 		Held for
trading 		Fair value
through P&L 		Total
  $m $m $m $m
Issued currency 4,254 -  -  4,254
Accounts payable 23 7,337 -  -  7,337
Borrowings: 24
     Government stock 42,971 -  3,047 46,018
     Treasury bills 6,605 -  423 7,028
     Government retail stock 261 -  -  261
     Settlement deposits with Reserve Bank -  -  6,276 6,276
     Derivatives in loss -  2,767 -  2,767
     Finance lease liabilities 1,176 -  -  1,176
     Other borrowings 20,999 209 5,511 26,719
Total borrowings 72,012 2,976 15,257 90,245
Total financial liabilities 83,603 2,976 15,257 101,836
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