Supercuts 2010 Annual Report Download - page 202

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PROVALLIANCE SAS
CONSOLIDATED FINANCIAL STATEMETS
DECEMBER 31, 2009 AND 2008
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(INFORMATION AS OF DECEMBER 31, 2009 AND FOR THE YEAR THEN ENDED NOT
COVERED BY AUDITORS' REPORT INCLUDED HEREIN)
14. FINANCIAL INSTRUMENTS (Continued)
14.2 Impact of financial instruments
14.3 Management of interest rate risk
The Group is exposed to interest rate risk as its debt comprises both fixed and variable rate borrowings. The risk arising from fluctuations
in variable interest rates is hedged using interest rate swaps whereby the Group receives (or pays) the difference between fixed and variable rate
interest streams calculated on notional principal amounts. Interest rate swaps are qualified as cash flow hedges and are measured at fair value as
determined based on prices quoted by the banks.
The following table shows the notional amounts and remaining duration of the interest rate swaps outstanding at the end of the reporting
period.
190
2009
Impact on net
financial
income/(expense) Impact on equity
Non
-
current financial assets
71,745
Non
-current financial
liabilities
(354,246
)
TOTAL
(282,501
)
2008
Impact on net
financial
income/(expense) Impact on equity
Non
-
current financial assets
45,761
Non
-current financial
liabilities
TOTAL
45,761
At Dec. 31, 2009
Average
contractual fixed
interest rate Notional
amount Fair value
Less than one year
Between one and
five years
3.45
%
11,653,468
(230,271
)
Beyond five years
3.38
%
2,832,143
(123,975
)
TOTAL
14,485,611
(354,246
)