|
|
 |
|
|
|
|
| Available-for-sale investments |
|
87.1 |
|
-25.2 |
|
61.9 |
|
| Derivatives measured to fair value |
|
|
|
|
|
|
|
| Non-qualifying hedges |
|
5.0 |
|
-1.4 |
|
3.6 |
|
| Cash-flow hedges |
|
19.7 |
|
-5.9 |
|
13.8 |
|
| Fair-value hedges |
|
22.0 |
|
-6.3 |
|
15.7 |
|
| Restatement of hedged assets and liabilities at fair value |
|
-39.0 |
|
11.2 |
|
-27.8 |
|
| Total Adjustments |
|
94.8 |
|
-27.6 |
|
67.2 |
|
The Group reclassified its investments in both listed and unlisted securities as available-for-sale investments, revalued them to fair value at 1 January and made a cumulative adjustment of EUR 61.9 million, net of taxes, to retained earnings.
Other derivatives, considered to represent non-qualifying hedges under the strict criteria of IAS 39, were measured at fair value and shown in the Balance Sheet as either assets or liabilities, which resulted in adjustments of EUR 6.0 million to interest-bearing assets and EUR 1.0 million in interest-bearing liabilities. The Group recorded a corresponding cumulative credit of EUR 3.6 million, net of taxes, in retained earnings to recognise the difference between the carrying values and fair values of these derivatives.
In addition, adjustments of EUR 23.0 million were recorded in interest-bearing assets and EUR 3.2 million in interest-bearing liabilities to recognise all derivatives designated as cash flow hedging instruments at fair value; this included EUR -0.3 million relating to commodity hedges. The Group also recorded a corresponding cumulative adjustment of EUR 13.8 million net of tax in retained earnings to recognise the difference between carrying values and fair values.
The Group recorded a cumulative adjustment of EUR 15.7 million net of taxes in retained earnings at 1 January to recognise at fair value all derivatives designated as fair value hedging instruments, against which the Group also recorded a cumulative negative adjustment of EUR 27.8 million net of taxes to recognise the difference, attributable to the hedged risks, between carrying values and fair values of the assets and liabilities being hedged.
Shareholders' Equity - Other Comprehensive Income ("OCI")
In 2000 the Group did not recognise in its Financial Statements the changes in fair values of derivative financial instruments, however with the adoption of IAS 39 on 1 January 2001, certain derivatives were designated as cash flow hedges and measured to fair values with the fair value movements being disclosed in the separate equity category of OCI: Hedging Reserve. The other component of OCI is the available-for-sale reserve, representing the difference between the fair value carrying amounts of investments and their cost (see Note 12). Movements in the year for these two reserves, together with the balances at the year end, are as shown below.
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