Company: WEBNF
Filing Date: 2025-11-04
Form Type: 20-F
Source: 0001104659-25-105894
Chunk: 81

Company: WESTPAC BANKING CORP
Filing Date: 2025-11-04
Form: 20-F
Item: Item 14
Chunk 81
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Balance as at end of year                       ​         694   ​       5         699   ​         978   ​   (198)         780
Parent Entity                                   ​           ​   ​       ​   ​       ​   ​           ​   ​       ​   ​       ​
Balance as at beginning of year                 ​         852   ​   (136)         716   ​       (288)   ​     (1)       (289)
Net gains/(losses) from changes in fair value   ​       (305)   ​     151       (154)   ​       1,049   ​   (176)         873
Transferred to interest income                  ​         129   ​      25         154   ​          91   ​      41         132
Balance as at end of year                       ​         676   ​      40         716   ​         852   ​   (136)         716
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There were nil net gains/losses (2024: net gains $16 million) remaining in the cash flow hedge reserve relating to hedge relationships for which hedge accounting is no longer applied for Westpac and the Parent Entity.As disclosed in Note 26, the net gains from changes in the fair value of net investment hedges were $95 million (2024: net gain $28 million) for Westpac and $53 million (2024: net gain $31 million) for the Parent Entity. Included in the foreign currency translation reserve is a loss of $158 million (2024: $158 million loss) for Westpac and $162 million (2024: $162 million loss) for the Parent Entity relating to discontinued hedges of our net investment in USD operations. This would only be transferred to the income statement on disposal of the related USD operations.
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WESTPAC GROUP 2025 ANNUAL REPORT
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NOTES TO THE FINANCIAL STATEMENTS

Note 20.Derivative financial instruments (Continued)
Hedge effectiveness
Hedge effectiveness is tested prospectively at inception and during the lifetime of hedge relationships. For one-to-one hedge relationships this testing uses a qualitative assessment of matched terms where the critical terms of the derivatives used as the hedging instrument match the terms of the hedged item. In addition, a quantitative effectiveness test is performed for all hedges which could include regression analysis, dollar offset and/or sensitivity analysis.
Retros