Yea I realise the change in equity reflected a change in financial instruments. I figured a $300k gain on equity reflects that if there was a 10% change in NZD/USD, payments to suppliers would be $300k more than if the hedge was not in place. So if the hedge covers 30% of their payments if the current NZD/USD is maintained would this increase expenses by $1M?
I guess what I was trying to find out was the realistic impact on their expenses from the lower NZD (if the current NZD/USD was maintained). I am probably far off base here. I have basic accounting knowledge but would really like to learn more about the finer details like this sort of thing.
Basic economics tells us that an increase in expenses will be taken up by the supplier and consumer so an increase in expense doesnt necesarily translate to the same decrease in profits but I am still interested in the increase in expesne.