|
|
 | | | |
- close
- close
- close
- close
| |||||||||
This excerpt taken from the ICI 6-K filed Mar 21, 2007. Exposure to credit, interest rate, commodity price and currency risks arise in the normal course of the Group’s business. Derivative financial instruments are used to hedge exposure to fluctuations in foreign exchange rates, interest rates and commodity price movements. The Group’s treasury objectives, risk management strategies and policies are discussed in the financial review section of the Business review, on pages 29 to 31. The financial instruments note discloses in full the Group’s financial assets and financial liabilities, including held for sale balances of the Quest business (see note 11).
(a) Interest rate risk
Back
to Contents
31 Financial instruments (continued)
Hedging The fair value of interest rate swaps recognised as hedges at 31 December 2006 is a net liability of £13m (2005 £4m), comprised of assets of £7m (2005 £17m) and liabilities of £20m (2005 £21m). From 1 January 2005 interest rate swaps designated as fair value hedges are fair valued through the income statement as part of net finance expense. Underlying loans that form part of fair value hedge relationships are adjusted for fair value attributable to hedged risk through the income statement to offset any mark-to-market adjustment arising on the interest rate swaps. Hedge documentation is prepared for all fair value hedges at inception and effectiveness testing is carried out quarterly. All designated hedges have remained effective throughout the current financial year. This excerpt taken from the ICI 20-F filed Mar 31, 2006. Exposure to credit, interest rate, commodity price and currency risks arise in the normal course of the Group’s business. Derivative financial instruments are used to hedge exposure to fluctuations in foreign exchange rates, interest rates and commodity price movements. The Group’s treasury objectives, risk management strategies and policies are discussed in the Operating and financial review on pages 22 and 23.
This excerpt taken from the ICI 6-K filed Mar 14, 2006. Exposure to credit, interest rate, commodity price and currency risks arise in the normal course of the Group’s business. Derivative financial instruments are used to hedge exposure to fluctuations in foreign exchange rates, interest rates and commodity price movements. The Group’s treasury objectives, risk management strategies and policies are discussed in the Operating and financial review on pages 22 and 23.
| EXCERPTS ON THIS PAGE:
RELATED TOPICS for ICI: |
| |||||||
