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Integrated report Statutory reportS Financial StatementS
Consolidated

Presentation contracts, both the deferred hedging gains and losses and
Borrowings are classified as current liabilities unless the the deferred aligned forward points are included within
group has an unconditional right to defer settlement the initial cost of the asset. the deferred amounts are
of the liability for at least 12 months after the reporting ultimately recognised in the Consolidated Statement of
period. profit and loss as the hedged item affects profit or loss.

trade and other payables are presented as current When a hedging instrument expires, is sold or terminated,
liabilities unless payment is not due within 12 months after or when a hedge no longer meets the criteria for hedge
the reporting period. accounting, then hedge accounting is discontinued
prospectively and any cumulative deferred gain or loss and
2.15.4 Derivatives and hedging activities deferred costs of hedging in equity at that time remains
in equity until the forecast transaction occurs. When the
In the ordinary course of business, the group uses certain
derivative financial instruments to reduce business risks forecast transaction is no longer expected to occur, the
which arise from its exposure to foreign exchange, fuel and cumulative gain or loss and deferred costs of hedging that
interest rate fluctuations associated with borrowings (cash were reported in equity are immediately transferred to the
flow hedges). When the group opts to undertake hedge Consolidated Statement of profit and loss.
accounting, the group documents, at the inception of the Derivatives that are not designated as hedges
hedging transaction, the economic relationship between
hedging instruments and hedged items including whether When derivative contracts to hedge risks are not
the hedging instrument is expected to offset changes designated as hedges, such contracts are accounted
in cash flows or fair values of hedged items. the group through FVtpl.
documents its risk management objective and strategy for
undertaking various hedge transactions at the inception the entire fair value of a hedging derivative is classified as a
of each hedge relationship. non-current asset or liability when the remaining maturity
of the hedged item exceeds 12 months; it is classified as a
derivatives are initially recognised at fair value on the current asset or liability when the remaining maturity of
date the derivative contract is entered into and are the hedged item does not exceed 12 months.
subsequently remeasured to their fair value at the end
of each reporting period. the accounting for subsequent 2.15.5 Financial guarantee contracts
changes in fair value depends on whether the derivative Financial guarantee contracts are recognised as a financial
is designated as a hedging instrument, and if so, the liability at the time of issuance of guarantee. the liability
nature of the item being hedged and the type of hedge is initially measured at fair value and is subsequently
relationship designated. measured at the higher of the amount of loss allowance
determined, or the amount initially recognised less, the
Cash flow hedges that qualify for hedge accounting cumulative amount of income recognised.
the effective portion of changes in the fair value of
derivatives that are designated and qualify as cash flow 2.15.6 Offsetting of financial instruments
hedges, is recognised through oCI and as cash flow Financial assets and financial liabilities are offset when the
hedging reserve within equity, limited to the cumulative group has a legally enforceable right (not contingent on
change in fair value of the hedged item on a present future events) to off-set the recognised amounts either to
value basis from the inception of the hedge. the gain settle on a net basis, or to realise the assets and settle the
or loss relating to the ineffective portion is recognised liabilities simultaneously.
immediately in the Consolidated Statement of profit and
loss. 2.15.7 Fair value of financial instruments
In determining the fair value of its financial instruments,
amounts accumulated in equity are reclassified to the the group uses a variety of methods and assumptions that
Consolidated Statement of profit and loss on settlement. are based on market conditions and risks existing at each
When the hedged forecast transaction results in the reporting date. the methods used to determine fair value
recognition of a non-financial asset, the amounts include discounted cash flow analysis, available quoted
accumulated in equity with respect to gain or loss relating market prices and dealer quotes. all methods of assessing
to the effective portion of the spot component of forward fair value result in general approximation of value.

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