Unilever 2005 Annual Report Download - page 114

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Financial Statements
Unilever Annual Report and Accounts 2005 111
Notes to the consolidated accounts
Unilever Group
19 Financial instruments (continued)
€ million € million € million € million
Assets Assets Liabilities Liabilities
Fair values of hedges of net investments in foreign entities 2005 2004 2005 2004
Current
Foreign exchange derivatives 250 12 116
The fair value of borrowing-related derivatives included above at 31 December 2005 amounted to €249 million (2004: €(4) million). The impact
of exchange rate movements on the fair value of forward exchange contracts used to hedge net investments is recognised in reserves.
€ million € million € million € million
Assets Assets Liabilities Liabilities
Fair values of natural hedges 2005 2004 2005 2004
Current
Interest rate derivatives 752 2–
Cross currency swaps 253 1 4
Foreign exchange derivatives 11 121 282 51
271 173 285 55
Non-current
Interest rate derivatives –20 410
Cross currency swaps ––27 12
–20 31 22
271 193 316 77
Of the fair values disclosed above, the fair value of borrowing-related derivatives at 31 December 2005 amounted to €(45) million
(2004: €116 million).
€ million € million € million € million
Assets Assets Liabilities Liabilities
Fair values of other derivatives held 2005 2004 2005 2004
Current
Interest rate derivatives –––5
Forward purchase contract own shares ––7–
––75
Non-current
Forward purchase contract own shares –––14
––719
Additional information
The fair values of forward foreign exchange contracts represent the unrealised gain or loss on revaluation of the contracts at the year-end
forward exchange rates. The fair values of interest rate derivatives are based on the net present value of the anticipated future cash flows.
Embedded derivatives
In accordance with IAS 39, 'Financial instruments: Recognition and Measurement', Unilever has reviewed all contracts for embedded derivatives
that are required to be separately accounted for if they do not meet specific requirements set out in the standard.