Chrysler 2011 Annual Report Download - page 190

189
Consolidated
Financial Statements
at 31 December 2011
In respect of derivative financial instruments, in 2011 the Group reclassified gains of €13 million (losses of €168 million in 2010 for Continuing Operations),
net of the tax effect, from other comprehensive income to profit or loss. These items are reported in the following lines:
(€ million) 2011 2010 (*)
Currency risk
Increase (Decrease) in Net revenues 65 (64)
Decrease (Increase) in Cost of sales (36) (83)
Financial income (expenses) (19) (19)
Result from investments 23 (5)
Interest rate risk
Decrease (Increase) in Cost of sales (4) (8)
Result from investments (5) (7)
Financial income (expenses) (2) (5)
Commodities price risk
Decrease (Increase) in Cost of sales (3) 5
Taxes income (expenses) (3) 37
Ineffectiveness - overhedges (3) (19)
Total recognised in the income statement 13 (168)
(*) The amounts relate to Continuing Operations.
The ineffectiveness of cash flow hedges was not material in 2011 or 2010.
In 2011 there was an overall negative economic effect of €3 million (negative effect of €19 million in 2010 from hedges of assets and liabilities relating to
Continuing Operation) which subsequently turned out to be in excess of the future flows being hedged (overhedges).
Fair value hedges
The gains and losses arising from the valuation of interest rate and currency derivatives financial instruments (mostly for managing currency risk) and interest
rate derivatives (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:
(€ million) 2011 2010 (*)
Currency risk
Net gains (losses) on qualifying hedges (19) (50)
Fair value changes in hedged items 19 50
Interest rate risk
Net gains (losses) on qualifying hedges 24 15
Fair value changes in hedged items (26) (15)
Net gains (losses) (2) -
(*) The amounts relate to Continuing Operations.
The ineffective portion of transactions treated as fair value hedges was a negative amount of 2 million in 2011 (in 2010 not significant for Continuing
Operations).