Vector Annual Report 2017

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.

107

Vector://AR 17

Made with FlippingBook Annual report