84
85
Annual Financial Statements
At inception of the hedging transaction, the Group validates the hedging relation-
ship between the underlying and the hedging instrument as far as its risk man-
agement strategy is concerned. The Group also verifies the hedging efficiency
from the beginning of the hedging relationship and on a continuing basis.
All derivative financial instruments are initially recognized at fair value as at the
date of settlement and are valued on a mark - to - market basis on each balance
sheet date. The result of this valuation is recognized as an asset when positive
and as a liability when negative.
When a derivative financial instrument is no longer regarded as hedging instru-
ment any difference in its fair value is recognized in profit and loss.
There are three kinds of hedges:
A. Fair Value Hedging
Fair value hedging is regarded when hedging the exposure in the fluctuations of
the fair value of a recognized asset, liability, contingent liability or part of them that
could have a negative impact on results.
When hedging accounting, concerning fair value hedge, is followed then any
profit or loss from revaluation is recognized in profit and loss.
B. Cash Flow Hedging
The Group enters into Cash Flow Hedging transactions in order to cover the risks
that cause fluctuations in its cash flows and arise either from an asset or a liability
or a forecasted transaction.
On revaluation of open positions, the effective part of the hedging instrument is
recognized directly in Equity as “Hedging Reserve” while the ineffective part is
recognized in Profit & Loss. The amounts recognized in Equity are transferred in
profit and loss at the same time as the underlying.
When a hedging instrument has expired, sold, settled or does not qualify for
hedging accounting all accumulated profit or loss recognized in Equity, stays in
Equity until the final settlement of the underlying. If the underlying is not expected
to be settled then any profit or loss recognized in Equity is transferred to profit
and loss account.
C. Hedging of a Net Investment
Hedging of a foreign investment is regarded for
accounting purposes in a way similar to cash flow
hedging.
The effective part of the hedging result is recognized
directly in Equity while any ineffective part is recog-
nized in profit and loss. Accumulated profit or loss
recognized in Equity is transferred in profit and loss
account at the time of disposal of the investment.
Determination of Fair Value
The fair value of financial instruments trading in an
active market is defined by the published prices as
of the date of the financial statements.
The fair value of financial instruments not traded in
active market is defined through the use of valua-
tion techniques and assumptions based on relevant
market information as of the date of the financial
statements.
MYTILINEOS GROUP
(Amounts in thousands
€
)
Land &
Buildings
Vehicles &
mechanical
equipment
Furniture and
other
equipment
Tangible
assets under
construction
Total
Gross Book Value
391,140
1,386,321
31,656
22,078
1,831,195
Accumulated depreciation and/or impairment
(74,063)
(651,858)
(23,600)
-
(749,522)
Net Book Value as at
1/1/2014
317,077
734,462
8,056
22,078
1,081,673
Gross Book Value
389,660
1,384,596
32,822
41,630
1,848,709
Accumulated depreciation and/or impairment
(79,427)
(681,291)
(24,633)
-
(785,352)
Net Book Value as at
31/12/2014
310,233
703,305
8,189
41,630
1,063,357
Gross Book Value
398,105
1,417,786
33,839
56,646
1,906,376
Accumulated depreciation and/or impairment
(86,814)
(723,259)
(25,928)
-
(836,002)
Net Book Value as at
31/12/2015
311,291
694,527
7,911
56,646
1,070,375
(Amounts in thousands
€
)
Land &
Buildings
Vehicles &
mechanical
equipment
Furniture and
other
equipment
Tangible
assets under
construction
Total
Net Book Value as at
1/1/2014
317,077
734,462
8,056
22,078
1,081,673
Additions
3,937
11,972
1,076
32,463
49,448
Sales - Reductions
(154)
(1,398)
39
(8,019)
(9,533)
Depreciation
(7,413)
(43,899)
(1,477)
-
(52,789)
Reclassifications
425
4,369
830
(5,851)
(228)
Net Foreign Exchange Differences
2,510
16
6
527
3,059
Tangible Assets From Acquisition/(Sale) Of
Subsidiary
(6,149)
(2,215)
(341)
433
(8,272)
Merge Through Acquisition Of Subsidiary
-
(2)
-
-
(1)
Net Book Value as at
31/12/2014
310,233
703,305
8,189
41,630
1,063,357
Additions
3,779
35,843
812
35,264
75,698
Sales - Reductions
(22)
(14,574)
(9)
(384)
(14,989)
Depreciation
(7,411)
(47,219)
(1,402)
-
(56,033)
Reclassifications
2,357
17,160
329
(20,400)
(554)
Net Foreign Exchange Differences
2,356
13
(9)
536
2,896
Net Book Value as at
31/12/2015
311,291
694,527
7,911
56,646
1,070,375
4. Notes on the financial Statements
4.1 Tangible assets
