← Statement Notes index
23. Cash flow hedging reserve
Cash flow hedging reserve comprises changes in the valuation of foreign-currency denominated bank borrowings used as hedging instruments designated to hedge cash flows, less the effect of income tax.
Changes in the fair value of derivative financial instruments designated to hedge cash flows, to the extent representing an effective hedge are charged to the cash flow hedging reserve, while the ineffective portion is charged to finance income or costs in the reporting period.
| PLN '000 | Note | Year ended Dec 31 2015 |
Year ended Dec 31 2014 |
|---|---|---|---|
| At beginning of period | (412,535) | 61,019 | |
| Valuation of cash flow hedging instruments | 31.3 | (355,973) | (584,653) |
| - effective portion | (356,477) | (584,731) | |
| - ineffective portion (1) | 504 | 78 | |
| Income tax on valuation of cash flow hedging instruments | 10.1 | 67,620 | 111,099 |
| At end of period | (700,888) | (412,535) |
(1) The ineffective portion, charged to finance costs.
The Notes to the consolidated financial statements are an integral part of the statements.
(This is a translation of a document originally issued in Polish)
