ANNUAL REPORT 2008 - Gorenje Group

176
2008
Forward exchange transactions
At 31 December 2008, forward exchange transactions were recorded by Gorenje, d.d. in the total
amount of TEUR 51,795. Forward exchange transactions were used in 2008 to hedge against
changes in the currency parity between EUR/PLN, EUR/AUD, EUR/USD, EUR/HRK, EUR/HUF,
EUR/GBP and EUR/RSD. At the year-end 2008, the hedge of the following currency parities was
shown: EUR/PLN, EUR/USD, EUR/HRK and EUR/GBP. The maturity of forward exchange transactions
is a short-term maturity (up to one year).
The basis for determination of fair value of financial instruments is provided on the Reuters portal.
The decisive values are the values of the opposite forward exchange transactions with the same
maturities effective at the reporting date. The fair value of forward exchange transactions at the
balance sheet date is the difference between the value of actually concluded forward exchange
transactions and the value of the opposite forward exchange transactions at the balance sheet
date, taking into consideration the same maturities of separate forward exchange transactions.
The total fair value of forward exchange transactions amounted to TEUR 4,793 at 31 December
2008 and was recorded under other current investments.
Interest rate swap transactions
The amount of hedged items recorded by Gorenje, d.d., for which interest rate swap transactions
were concluded, totalled TEUR 150,429 at 31 December 2008. Interest rate swap transactions are
used to hedge against changes in the variable interest rate EURIBOR. The maturity of transactions
is a long-term maturity; they mature successively until 31 January 2012.
The basis for determination of fair value of financial instruments is provided on the Reuters portal;
the decisive values are the values of interest rate swap transactions with the same maturities effective
at the balance sheet.
The fair value of interest rate swap transactions at the balance sheet date is the discounted difference
between the interest cash flow under the interest rate swap contracts and the interest cash
flow under the interest rate swap contracts of equal value at the balance sheet date.
The fair value of interest rate swap transactions totalled TEUR -10,078 at 31 December 2008 and
was recorded under other current assets in the amount of TEUR 327 and under financial liabilities
in the amount of TEUR 10,405.
A portion of hedged items under the interest rate swap contracts and the forward exchange contracts,
which relate to hedged items in the balance sheet, were recorded in equity under fair value
reserve.
Loans and borrowings are measured on the basis of recalculation using the effective interest rates,
which do not differ essentially from the stipulated interest rates. Therefore, the stipulated interest
rate is used in calculations.
Current trade receivables are not discounted due to short-term maturity. However, impairment
loss on fair value is considered.
Note 36 – Related party transactions
The related party transactions recorded by the Company were consummated based on the sale/
purchase contracts concluded with related parties on terms equivalent to those prevailing in the
arm’s-length transactions. The individual transactions with related parties were disclosed under the
respective balance sheet disclosures.