ANNUAL REPORT 2011 - DONG Energy
ANNUAL REPORT 2011 - DONG Energy
ANNUAL REPORT 2011 - DONG Energy
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Hedging of net investments in foreign subsidiaries<br />
DKK million Net investment<br />
including equitylike<br />
loans<br />
Hedged amount<br />
in currency<br />
<strong>2011</strong> 2010<br />
net position<br />
Foreign exchangeadjustmentsrecognised<br />
in equity<br />
Net investment<br />
including equitylike<br />
loans<br />
Hedged amount<br />
in currency<br />
net position<br />
Foreign exchangeadjustmentsrecognised<br />
in equity<br />
GBP 25,771 (22,400) 3,371 236 21,678 (15,886) 5,792 147<br />
NOK 10,932 (3,361) 7,571 349 10,437 (3,962) 6,475 399<br />
SEK 2,776 (1,407) 1,369 (254) 2,714 (1,782) 932 (261)<br />
EUR 5,974 - 5,974 (9) 5,143 0 5,143 7<br />
PLN 1,243 (1,183) 60 (38) 1,457 (1,265) 192 (17)<br />
total 46,696 (28,351) 18,345 284 41,429 (22,895) 18,534 275<br />
Ineffectiveness relating to hedging of net investments in foreign<br />
subsidiaries was DKK 28 million (2010: DKK 3 million).<br />
fair value hierarchy of fi nancial instruments<br />
DKK million<br />
Quoted<br />
prices<br />
(Level 1)<br />
Observable<br />
inputs<br />
(Level 2)<br />
<strong>2011</strong> 2010<br />
Non-observable<br />
inputs<br />
(Level 3) total<br />
Quoted<br />
prices<br />
(Level 1)<br />
Observable<br />
inputs<br />
(Level 2)<br />
Non-observable<br />
inputs<br />
(Level 3) total<br />
Derivative fi nancial<br />
instruments - 13,967 2,093 16,060 - 12,819 1,642 14,461<br />
Securities 9,914 - - 9,914 7,620 - - 7,620<br />
assets 9,914 13,967 2,093 25,974 7,620 12,819 1,642 22,081<br />
Derivative fi nancial<br />
instruments - (12,135) (960) (13,095) - (13,312) (38) (13,350)<br />
liabilities 0 (12,135) (960) (13,095) 0 (13,312) (38) (13,350)<br />
Level 1 comprises quoted securities that are traded in active<br />
markets.<br />
Level 2 comprises derivative fi nancial instruments, where valuation<br />
models with observable inputs are used to measure fair<br />
value, but with discounting to present value applying one of<br />
the discount rates set by the Group. Level 2 also comprises<br />
quoted securities that have not been traded in the market suffi<br />
ciently for a reliable fair value to be obtained.<br />
Level 3 comprises primarily long-term contracts on purchase/<br />
sale of, in particular, electricity and gas, and oil options. The<br />
fair values are based on assumptions concerning the longterm<br />
prices of, in particular, electricity, gas, coal, USD, EUR,<br />
volatilities as well as risk premiums in respect of liquidity and<br />
market risks and are determined by discounting of expected<br />
cash fl ows. Level 3 also includes other fi nancial instruments in<br />
which primarily electricity, oil and gas prices have been estimated,<br />
and where the sum of these estimated, non-observable<br />
inputs may affect fair value.<br />
<strong>DONG</strong> ENERGY <strong>DONG</strong> ENERGY GROUP <strong>ANNUAL</strong> <strong>REPORT</strong> <strong>2011</strong> – COnsOliDatED finanCial statEmEnts<br />
121 117<br />
notes