FINANCIAL STATEMENTS 2010 - Finnlines
FINANCIAL STATEMENTS 2010 - Finnlines
FINANCIAL STATEMENTS 2010 - Finnlines
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Hedge Accounting<br />
The Group has ordered six ro-ro vessels from the Chinese Jinling shipyard. These vessels will be paid partly in USD but the instalments<br />
have been fully hedged against EUR. The Group applies hedge accounting in accordance with IAS 39 to these derivative contracts for<br />
the spot part of the currency forward. It is considered as hedging of cash flow from a highly probable transaction. The following table<br />
shows the duration and fair values of the hedging instruments. The maturities of the forward contracts are in accordance with the peri-<br />
ods when the hedged cash flows are expected to occur.<br />
EUR 1,000 Fair value Spot price * Interest element **<br />
Hedge accounting <strong>2010</strong><br />
Jinling vessel order USD / EUR-hedging<br />
Due 2007 -1,473 -1,091<br />
Due 2008 -3,706 -2,922<br />
Due 2011 608 233 293<br />
Due 2012 49 7 40<br />
-4,522 -3,773 333<br />
* Spot part (net) of the currency forward contract is under hedge accounting and changes are booked in other comprehensive income<br />
including gross value change of EUR +1,418 thousand of the instruments and deferred tax change of EUR -369 thousand.<br />
** Interest element of the currency forward contract, non-hedge accounting, through P&L.<br />
EUR 1,000 Fair value Spot price * Interest element **<br />
Hedge accounting 2009<br />
Jinling vessel order USD / EUR-hedging<br />
Due 2007 -1,473 -1,091<br />
Due 2008 -3,706 -2,922<br />
Due <strong>2010</strong> -244 -272 124<br />
Due 2011 -434 -537 292<br />
-5,856 -4,822 416<br />
* Spot part (net) of the currency forward contract is under hedge accounting and changes are booked in other comprehensive income<br />
including gross value change of EUR -723 thousand of the instruments and deferred tax of EUR +188 thousand.<br />
** Interest element of the currency forward contract, non-hedge accounting, through P&L.<br />
Changes in fair value from sources other than derivatives under hedge accounting are recognised through profit or loss and presented<br />
under financial items.<br />
(figures in EUR thousand, if not stated otherwise)<br />
FINNLINES PLC Financial Statements <strong>2010</strong><br />
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