Views
5 months ago

Annual report and accounts 2016

138 Notes to the

138 Notes to the consolidated financial statements continued 27 Financial instruments continued € million Financial liabilities Loans and payables Derivatives used for hedging Nonfinancial liabilities Total carrying amount by balance sheet item Non-current liabilities Interest-bearing long-term borrowings 7,498 – – 7,498 Derivative financial instruments – 282 – 282 Other long-term liabilities 10 – 213 223 Current liabilities Current portion of long-term borrowings 1,132 – – 1,132 Trade and other payables 3,442 – 361 3,803 Derivative financial instruments – 1,328 – 1,328 b Fair value of financial assets and financial liabilities The fair values of the Group’s financial instruments are disclosed in hierarchy levels depending on the nature of the inputs used in determining the fair values as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices present actual and regularly occurring market transactions on an arm’s length basis; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of financial instruments that are not traded in an active market is determined by valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates; and Level 3: Inputs for the asset or liability that are not based on observable market data. The fair value of cash and cash equivalents, other current interest-bearing deposits, trade receivables, other current assets and trade and other payables approximate their carrying value largely due to the short-term maturities of these instruments. The following methods and assumptions were used by the Group in estimating its fair value disclosures for financial instruments: Level 1: The fair value of listed asset investments classified as available-for-sale and listed interest-bearing borrowings is based on market value at the balance sheet date. Level 2: The fair value of derivatives and other interest-bearing borrowings is determined as follows: • Forward currency transactions and over-the-counter fuel derivatives are measured at the market value of instruments with similar terms and conditions at the balance sheet date using forward pricing models. Counterparty and own credit risk is deemed to be not significant. • The fair value of the Group’s interest-bearing borrowings including leases is determined by discounting the remaining contractual cash flows at the relevant market interest rates at the balance sheet date. Level 3: Unlisted investments are predominantly measured at historic cost less accumulated impairment losses. INTERNATIONAL AIRLINES GROUP Annual Report and Accounts 2016

139 The carrying amounts and fair values of the Group’s financial assets and liabilities at December 31, 2016 are set as follows: € million Fair value Carrying value Level 1 Level 2 Level 3 Total Total Financial assets Available-for-sale financial assets 15 – 58 73 73 Aircraft lease hedges – 5 – 5 5 Forward currency contracts 1 – 252 – 252 252 Fuel derivatives 1 – 212 – 212 212 Currency option contracts 1 – 29 – 29 29 Financial liabilities Interest-bearing loans and borrowings: Finance lease obligations – 6,823 – 6,823 6,602 Fixed rate borrowings 1,020 286 – 1,306 1,366 Floating rate borrowings – 547 – 547 547 Aircraft lease hedges 2 – 1 – 1 1 Cross currency swaps 2 – 1 – 1 1 Forward currency contracts 2 – 32 – 32 32 Fuel derivatives 2 – 74 – 74 74 1 Current portion of derivative financial assets is €329 million. 2 Current portion of derivative financial liabilities is €88 million. The carrying amounts and fair values of the Group’s financial assets and liabilities at December 31, 2015 are set out below: Carrying Fair value value € million Level 1 Level 2 Level 3 Total Total Financial assets Available-for-sale financial assets 9 – 65 74 74 Aircraft lease hedges 1 – 12 – 12 12 Forward currency contracts 1 – 231 – 231 231 Fuel derivatives 1 – 3 – 3 3 Currency option contracts 1 – 14 – 14 14 Financial liabilities Interest-bearing loans and borrowings: Finance lease obligations – 6,117 – 6,117 5,878 Fixed rate borrowings 2,102 496 – 2,598 2,117 Floating rate borrowings – 635 – 635 635 Aircraft lease hedges 2 – 5 – 5 5 Forward currency contracts 2 – 10 – 10 10 Fuel derivatives 2 – 1,595 – 1,595 1,595 Strategic Report Corporate Governance Financial Statements Additional Information 1 Current portion of derivative financial assets is €198 million. 2 Current portion of derivative financial liabilities is €1,328 million. There have been no transfers between levels of fair value hierarchy during the year. The financial instruments listed in the previous table are measured at fair value for reporting purposes with the exception of the interest-bearing borrowings. c Level 3 financial assets reconciliation The following table summarises key movements in Level 3 financial assets: December December 31, € million 31, 2016 2015 Opening balance for the year 65 65 Settlements – (5) Exchange movements (7) 5 Closing balance for the year 58 65 www.iairgroup.com

Annual Report and Accounts 2012 - Speedy Hire plc
ANNUAL REPORT & ACCOUNTS - Somero Enterprises
Annual Report Accounts 2012 - Tribal
2011 Annual Report and Accounts - The Group
united-utilities-annual-report-2015
annual report 2014/15
Annual Report 2016
2011 Annual Report PDF - Tullow Oil plc
Annual Report PDF - Tullow Oil plc
Annual report and financial statements 2011 - Analist.nl
2004 Full Report and Accounts - DRS
ANNUAL REPORT AND ACCOUNTS 2012 - Royal and Sun Alliance
Annual Report and Accounts 2009 - BG Group
Annual Report & Accounts 2005 - Harvey Nash
Annual Report & Accounts 2002 - Harvey Nash
Accounts
redrow-plc-annual-report-2016
The-Weir-Group-PLC-Annual-Report-2013
2011 Annual Report (3 April 2012) - Grange Resources