GPG Report & Accounts 2003 - Guinness Peat Group plc

54 • GUINNESS PEAT GROUP PLC • ANNUAL REPORTNotes to Financial Statements – continued37. Derivatives and Other Financial Instruments - continuedHEDGESDuring 2003, the Group has hedged the following exposures:– interest rate risk – using interest rate swaps– currency risk – using forward foreign currency contracts and cross-currency interest rate swaps.The table below shows the extent to which the Group has off-balance sheet (unrecognised) gains and losses in respect offinancial instruments used as hedges at the beginning and end of the year. It also shows the amount of such gains and losseswhich have been included in the profit and loss account.GainsLosses£000 £000Gains/(losses) not yet taken at 1 January 2003 320 (760)(Gains)/losses arising in previous years included in 2003 profit (320) 760(Gains)/losses not included in 2003 profit arising before 1 January 2003 – –Unrecognised gains arising in 2003 113 –Gains not yet taken at 31 December 2003 113 –Of whichGains expected to be recognised in 2004 113 –Gains expected to be recognised after 2004 – –GAINS/(LOSSES) ON FINANCIAL ASSETS/LIABILITIESThe net gain/(loss) from buying and selling financial assets and financial liabilities shown in the profit and loss account isanalysed as follows:Year ended 31 December 2003 2002£000 £000Gains on disposal of investments (excluding derivatives) 40,904 26,601Gains on disposal of equity options, equity swaps and LEPOs 1,365 –Net (write-down)/write-back of investments (excluding derivatives) (11,083) 2,433Net write-back/(write-down) of equity options, equity swaps and LEPOs 1 (462)31,187 28,572