Chrysler 2008 Annual Report Download - page 161

In 2008 the Group transferred to income gains of €295 million (gains of €187 million in 2007) net of tax effect previously recognised
directly in equity presented in the following line items:
(€ millions) 2008 2007
Currency risk
- Increase in Net revenues 138 144
- Decrease/(Increase) in Cost of sales 115 35
- Financial income (expenses) 50 33
- Result from investments 9(4)
Interest rate risk
- Result from investments 914
- Financial income (expenses) (2) –
Taxes income (expenses) (24) (35)
Total recognised in the income statement 295 187
The ineffectiveness of cash flow hedges was not material for the years 2008 and 2007.
There was an overall positive economic effect of €21 million in 2008 from hedges which subsequently turned out to be in excess of
the future flows being hedged (over-hedges) (the effect was immaterial in 2007); this was mainly due to the contraction of volumes
in the Fiat Group Automobiles Sector in certain markets exposed to currency risk.
Fair value hedges
The gains and losses arising from the valuation of interest rate and currency derivatives (mostly for managing currency risk) and
interest rate derivatives (mostly for managing the interest rate risk) recognised in accordance with fair value hedge accounting and
the gains and losses arising from the respective hedged items are set out in the following table:
(€ millions) 2008 2007
Currency risk
- Net gains (losses) on qualifying hedges (34) 61
- Fair value changes in hedged items 34 (61)
Interest rate risk
- Net gains (losses) on qualifying hedges 80 (21)
- Fair value changes in hedged items (80) 21
Net gains (losses) ––
The ineffectiveness arising from transactions treated as fair value hedges in 2008 and 2007 was not significant.
Fiat Group Consolidated Financial Statements at 31 December 2008160