NOTES TO THE FINANCIAL STATEMENTS
21. Derivatives and hedge accounting:// CONTINUED 21.1 Effects of hedge accounting on the financial position and performance ( continued)
CHANGE IN FAIR VALUE OF THE HEDGING INSTRUMENT $000
ACCUMULATED FAIR VALUE HEDGE ADJUSTMENTS $000
CARRYING AMOUNT ASSETS/ (LIABILITIES) $000
CHANGE IN FAIR VALUE OF THE HEDGED ITEM $000
CHANGE IN VALUE IN COST OF HEDGING $000
WEIGHTED AVERAGE RATE
Fair value hedges 2017
FACE VALUE $000
Interest and exchange risk Hedged item: USD fixed rate exposure on borrowings Hedging instrument: Cross currency swaps
(697,139)
(23,498)
(719,268)
56,285
(697,139)
floating
20,964
(53,577)
(970)
Total
56,285 (53,577)
CHANGE IN FAIR VALUE OF THE HEDGING INSTRUMENT $000
ACCUMULATED FAIR VALUE HEDGE ADJUSTMENTS $000
CARRYING AMOUNT ASSETS/ (LIABILITIES) $000
CHANGE IN FAIR VALUE OF THE HEDGED ITEM $000
CHANGE IN VALUE IN COST OF HEDGING $000
WEIGHTED AVERAGE RATE
Fair value hedges 2016
FACE VALUE $000
Interest and exchange risk Hedged item: USD fixed rate exposure on borrowings Hedging instrument: Cross currency swaps
(796,014)
(79,783)
(874,114)
29,923
(796,014)
floating
75,511
(27,579)
(1,094)
Total
29,923 (27,579)
Hedging instruments and hedged items are included in the line items “Derivatives” and “Borrowings” respectively in the balance sheet. Ineffectiveness is the sum of the change in fair value of the hedged item and the change in fair value of the hedging instrument. The source of ineffectiveness is largely due to counterparty credit risk on the derivative instruments. Hedge ineffectiveness is included in the “Fair value change on financial instruments” in the profit or loss.
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