The Commonwealth Bank has moved to counter speculation that its decision to change the definition of “Cash Net Profit After Tax” to exclude unrealised gains and losses on derivatives used for hedging purposes suggested that it expected to incur a loss.
The bank’s chief financial officer, David Craig, said that it had become apparent that the decision had been interpreted by some market participants as suggesting that the group was “signalling that its interim result would include significant unrealised losses on derivatives used for hedging purposes”.
He rejected such speculation and advised that for the six months to December 30, 2007, the group would, in fact, report a small unrealised gain on derivatives used for hedging purposes.
