Annual report 2019

126 126

ON-BALANCE FINANCIAL INSTRUMENTS AND FAIR VALUE Financial instruments accounted for under assets and liabilities are financial fixed assets, cash and cash equivalents, receivables, and current and non-current liabilities. Derivatives are mainly future cash flows hedged by forward contracts to which hedge accounting is applied. The fair value of forward exchange contracts is based on their listed market price (unadjusted market prices in active markets for identical assets and liabilities) or discounted cash flows based on relevant conditions and durations of the contracts and including public interest rates for comparable instruments as at the balance sheet date, taking into account the credit risk of the counterparty. The fair value of other financial instruments is based on quoted prices or the actual interest rate as at the balance sheet date, taking into account terms and maturity. The fair value of non-interest-bearing financial instruments with a maturity of twelve months or less is deemed to be equal to their book value. The fair value of the majority of the financial instruments does not differ materially from the book value, with the exception of a number of loans and other payables with a fixed rate. The fair value of these instruments is disclosed below.

The carrying amount, fair value and the related hierarchy of derivatives and interest-bearing borrowings with fixed interest rates are:

As at 31 December 2018

As at 31 December 2019

CARRYING AMOUNT

CARRYING AMOUNT

FAIR VALUE

HIERARCHY

FAIR VALUE

HIERARCHY

Assets Non-current derivatives

683

683

2 2

6,015 3,275

6,015 3,275

2 2

Current derivatives

5,684

5,684

Liabilities Non-current derivatives

- 1,701 - 11,435

- 1,701 - 11,435

2 2

- 6,986 - 5,584

- 6,986 - 5,584

2 2

Current derivatives

Interest-bearing borrowings with fixed interest rates

- 288,751

- 293,160

3

- 294,058

- 306,753

3

ANNUAL REPORT 2019 – BOSKALIS FINANCIAL STATEMENTS 2019 A NUAL REPORT 2019 -- BOSKALIS FI ANCIAL STATEMENTS 2019 2019 USD forward selling (in US dollar) USD forward buying (in US dollar) Fuel hedges (in MT) 2018 USD forward selling (in US dollar) USD forward buying (in US dollar) Fuel hedges (in MT)

Derivatives relate to foreign currency forward contracts used to hedge expected foreign currency cash inflows, with the exception of EUR 0.2 million (2018: EUR 60 thousand) of the current assets and EUR 0.2 million (2018: EUR 2.5 million) of the current liabilities that relate to expected cash outflows for fuel costs.

An amount of EUR 289.1 million (2018: EUR 283.6 million) of the carrying amount of the interest-bearing borrowings with fixed interest rates are designated to net investment hedges.

Derivatives The composition of notional amounts of the outstanding derivatives (that are allocated in a hedge accounting relation) at year-end is presented below.

WITHIN ONE YEAR

AFTER ONE YEAR

TOTAL

- 336,936 53,964 - 87,353 39,220 27,153

- 61,663 38,811 - 22,028 14,836 25,536

- 398,599

92,775

Forward selling of other currencies (average contract rates in EUR) Forward buying of other currencies (average contract rates in EUR)

- 109,381

54,056 52,689

WITHIN ONE YEAR

AFTER ONE YEAR

TOTAL

- 304,188

- 31,654

- 335,842

20,044

3,060

23,104

Forward selling of other currencies (average contract rates in EUR) Forward buying of other currencies (average contract rates in EUR)

- 157,852

- 14,547

- 172,399

75,077 40,047

-

75,077 49,972

9,925