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This excerpt taken from the ELN 20-F filed Feb 26, 2009. (l) Derivative
financial instruments
We enter into transactions in the normal course of business
using various financial instruments in order to hedge against
exposures to fluctuating exchange and interest rates. We use
derivative financial instruments to reduce exposure to
fluctuations in foreign exchange rates and interest rates. A
derivative is a financial instrument or other contract whose
value changes in response to some underlying variable, that has
an initial net investment smaller than would be required for
other instruments that have a similar response to the variable
and that will be settled at a future date. We do not enter into
derivative financial instruments for trading or speculative
purposes.
Gains and losses on derivative financial instruments that
qualify as fair value hedges under SFAS No. 133,
“Accounting for Derivative Instruments in Hedging
Activities,” (SFAS 133), are recognized as an
offset to the
Table of Contents
Elan
Corporation, plc
NOTES TO
THE CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
related income or expense of the underlying hedged transaction.
The carrying value of derivative financial instruments is
reported within current assets or other current liabilities. We
did not hold any interest rate swap contracts or forward
currency contracts at December 31, 2008 or 2007. Interest
rate swaps held during the year ended December 31, 2006,
qualified for hedge accounting under SFAS 133. Forward
currency contracts held during the year ended December 31,
2006, did not qualify for hedge accounting under SFAS 133,
and were marked to market at the balance sheet date, with the
resulting gains and losses recognized in income.
We record at fair value certain freestanding warrants that were
acquired in investment transactions. Changes in their fair value
are recorded in the income statement and their carrying value is
recorded within current investment securities.
This excerpt taken from the ELN 20-F filed Feb 28, 2008. (k) Derivative
financial instruments
We enter into transactions in the normal course of business
using various financial instruments in order to hedge against
exposures to fluctuating exchange and interest rates. We use
derivative financial instruments to reduce exposure to
fluctuations in foreign exchange rates and interest rates. A
derivative is a financial instrument or other contract whose
value changes in response to some underlying variable, that has
an initial net investment smaller than would be required for
other instruments that have a similar response to the variable
and that will be settled at a future date. We do not enter into
derivative financial instruments for trading or speculative
purposes.
Gains and losses on derivative financial instruments that
qualify as fair value hedges under SFAS No. 133,
“Accounting for Derivative Instruments in Hedging
Activities,” (SFAS 133), are recognized as an offset
to the related income or expense of the underlying hedged
transaction. The carrying value of derivative financial
instruments is reported within current assets or other current
liabilities. We did not hold any interest rate swap contracts or
forward currency contracts at December 31, 2007. Interest
rate swaps held during the years ended December 31, 2006
and 2005, qualified for hedge accounting under SFAS 133.
Forward currency contracts held during the years ended
December 31, 2007, 2006 and 2005, did not qualify for hedge
accounting under SFAS 133, and were marked to market at
each balance sheet date, with the resulting gains and losses
recognized in income.
We record at fair value certain freestanding warrants. Changes
in their fair value are recorded in the income statement and
their carrying value is recorded within current assets or
current liabilities.
This excerpt taken from the ELN 20-F filed Mar 30, 2006. (k) Derivative
financial instruments
We enter into transactions in the normal course of business
using various financial instruments in order to hedge against
exposures to fluctuating exchange and interest rates. We use
derivative financial instruments to reduce exposure to
fluctuations in foreign exchange rates and interest rates. A
derivative is a financial instrument or other contract whose
value changes in response to some underlying variable, that has
an initial net investment smaller than would be required for
other instruments that have a similar response to the variable
and that will be settled at a future date. We do not enter into
derivative financial instruments for trading or speculative
purposes.
Gains and losses on derivative financial instruments that
qualify as fair value hedges under SFAS No. 133,
“Accounting for Derivative Instruments in Hedging
Activities,” (SFAS 133), are recognized as an offset
to the related income or expense of the underlying hedged
transaction. The carrying value of derivative financial
instruments is reported within current assets or other current
liabilities. Our interest rate swap contracts qualify for hedge
accounting under SFAS 133. Our forward currency contracts
do not qualify for hedge accounting SFAS 133, and are
marked to market at each balance sheet date, with the resulting
gains and losses recognized in income.
We fair value certain embedded derivative and freestanding
warrants. Changes in their fair value are recorded in the income
statement and their carrying value is recorded within current
assets or current liabilities.
This excerpt taken from the ELN 6-K filed Apr 11, 2005. l Derivative financial instruments We enter into transactions in the normal course of business using a variety of financial instruments in order to hedge against exposures to fluctuating exchange and interest rates. We use derivative financial instruments to reduce exposure to fluctuations in foreign exchange rates and interest rates. Derivative instruments are contractual agreements whose value reflects price movements in an underlying asset or liability. We do not enter into derivative financial instruments for trading or speculative purposes. Gains and losses on derivative financial instruments that qualify as hedges, which comprise our forward currency contract and interest rate swaps, are recognised in the profit and loss account as an offset to the related income or expense. | EXCERPTS ON THIS PAGE:
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