This excerpt taken from the MTW 8-K filed Jan 12, 2009.
(ii) Cash flow hedges:
The Groups interest rate swaps, foreign exchange forward contracts and certain commodity contracts for difference are accounted for as cash flow hedges. Upon the designation of these derivatives as cash flow hedges, any effective gains and losses arising are deferred in equity reserves. Any ineffective portions are recognised in profit and loss immediately. The effective gains and losses deferred in equity are taken to the income statement at the same time as the hedged item impacts profit and loss.
Maturity Profile of outstanding net derivative positions
At both 27 September 2008 and 29 September 2007 all derivative instruments held by the Group had an outstanding maturity of less than one year.
Note: It has been assumed that, where applicable, both foreign exchange rates and commodity prices prevailing at the balance sheet date will not vary over the time periods projected.