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METRO GROUP : ANNUAL REPORT 2010 : BUSINESS
→ NOTES : OThER NOTES
for the purpose of showing this reconciliation appropriately for
the period, relationships are created between hedging transactions
and underlying transactions and recognised as follows:
Within a fair value hedge, both the hedging transaction and
the hedged risk of the underlying transaction are recognised
at their fair value (market value). The value fluctuations
of both trades are shown in the income statement,
where they will be fully set off against each other in the case
of full effectiveness.
Within a cash flow hedge, the hedging transactions are also
principally recognised at their fair value (market value). In
the case of full effectiveness of the hedging transaction, the
value changes will be recognised in equity until the hedged
payment flows or expected transactions impact the result.
Only then will they be recognised in income.
31/12/2010 fair values 31/12/2009 fair values
Maturities Maturities
→ p. 206
hedging transactions that, according to IAS 39, are not part
of a hedge are recognised at their fair value (market value).
Value changes are recognised directly in income. Even if no
formal hedging relationship was created, these are hedging
transactions that are closely connected to the underlying
business and whose impact on earnings will be netted by
the underlying transaction (natural hedge).
The currency derivatives are used primarily for pound sterling,
danish krone, Czech koruna, Polish złoty, Japanese
yen, Swiss franc, hungarian forint, Russian rouble, new
Romanian leu, Turkish lira and uS dollar.
The derivative financial instruments have the following
maturities:
€ million
Interest rate transactions
Up to 1 year 1 to 5 years Over 5 years Up to 1 year 1 to 5 years Over 5 years
Interest rate swaps –9 –8 0 0 –15 0
within fair value hedges (0) (0) (0) (0) (0) (0)
within cash flow hedges (0) (–8) (0) (0) (–6) (0)
not part of a hedge
Currency transactions
(–9) (0) (0) (0) (–9) (0)
Currency futures/options –7 0 0 –2 0 0
within fair value hedges (0) (0) (0) (0) (0) (0)
within cash flow hedges (–7) (0) (0) (0) (0) (0)
not part of a hedge (0) (0) (0) (–2) (0) (0)
Interest rate/currency swaps 15 0 0 0 4 0
within fair value hedges (0) (0) (0) (0) (0) (0)
within cash flow hedges (0) (0) (0) (0) (0) (0)
not part of a hedge
Commodity transactions
(15) (0) (0) (0) (4) (0)
futures 0 4 0 –9 1 0
within fair value hedges (0) (0) (0) (0) (0) (0)
within cash flow hedges (0) (0) (0) (0) (0) (0)
not part of a hedge
Share price-related transactions
(0) (4) (0) (–9) (1) (0)
hedging of stock options 33 0 0 0 14 0
within fair value hedges (0) (0) (0) (0) (0) (0)
within cash flow hedges (33) (0) (0) (0) (14) (0)
not part of a hedge (0) (0) (0) (0) (0) (0)
32 –4 0 –11 4 0