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HYUNDAI MOTOR COMPANY Annual Report 2014
FINANCIAL STATEMENTS / 157156
(3) Derivative instrument
The Group enters into derivative instrument contracts such as forwards, options and swaps to hedge its exposure to changes in for-
eign exchange rate.
As of December 31, 2014 and 2013, the Group deferred a net loss of ￦30,363 million and a net income of ￦1,207 million, respectively,
in accumulated other comprehensive loss, on its effective cash flow hedging instruments.
The longest period in which the forecasted transactions are expected to occur is within 51 months as of December 31, 2014.
For the years ended December 31, 2014 and 2013, the Group recognized a net income of ￦178,547 million and a net loss of ￦230,974
million in profit or loss (before tax), respectively, which resulted from the ineffective portion of its cash flow hedging instruments and
changes in the valuation of its other non-hedging derivative instruments.
36. RELATED-PARTY TRANSACTIONS:
The transactions and balances of receivables and payables within the Group are wholly eliminated in the preparation of consolidated
financial statements of the Group.
(1) For the year ended December 31, 2014, significant transactions arising from operations between the Group and related
parties or affiliates by the Monopoly Regulation And Fair Trade Act of the Republic of Korea (“the Act”) are as follows:
In millions of Korean Won
Description
Sales/proceeds Purchases/expenses
Sales Others Purchases Others
Entity with
significant
influence over
the Company
Hyundai MOBIS Co., Ltd. ￦ 855,186 ￦ 9,962 ￦ 4,834,975 ￦ 39,486
Mobis Alabama, LLC 21,484 16,792 1,321,444 23,419
Mobis Automotive Czech s.r.o. 48 438 1,177,753 578
Mobis India, Ltd. 18,040 17,402 746,382 650
Mobis Parts America, LLC 25,720 5,561 529,788 1,616
Mobis Parts Europe N.V. 4,628 1,889 244,800 -
Mobis Brasil Fabricacao De Auto Pecas Ltda 2,561 -307,535 -
Mobis Module CIS, LLC - 448 216,528 28
Others 20,272 731 445,031 17,424
Joint ventures
and associates
Kia Motors Corporation 941,875 476,662 154,410 224,568
Kia Motors Manufacturing Georgia, Inc. 637,885 1,609 2,419,402 943
Kia Motors Russia LLC 885,546 156 -4,714
Kia Motors Slovakia s.r.o. 120,347 19,896 576,617 655
BHMC 956,691 44,452 404 -
HMGC 368,616 146 2,389 6,193
Hyundai WIA Corporation 200,301 520 856,907 14,985
Hyundai HYSCO Co., Ltd. 12,528 1,804 13,912 15
Others 456,964 35,133 2,870,138 1,803,768
Other related parties 3,073 6,258 408,969 454,203
Affiliates by the Act 780,543 69,118 4,756,881 1,380,518
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013