Unilever 2014 Annual Report Download - page 82
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Please find page 82 of the 2014 Unilever annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.16C. DERIVATIVES AND HEDGING ONTINUED
MASTER NETTIN OR SIMILAR AREEMENTS
A number of legal enttes wthn our roup enter nto dervatve transactons under Internatonal Swap and Dervatves Assocaton
(ISDA) master nettng agreements In general, under such agreements the amounts owed by each counter-party on a sngle day n
respect of all transactons outstandng n the same currency are aggregated nto a sngle net amount that s payable by one party to the
other In certan crcumstances such as when a credt event such as a default occurs, all outstandng transactons under the agreement
are termnated, the termnaton value s assessed and only a sngle net amount s payable n settlement of all transactons
The ISDA agreements do not meet the crtera for offsettng the postve and negatve values n the consoldated balance sheet
Ths s because the roup does not have any currently legally enforceable rght to offset recognsed amounts, between varous roup
and bank afflates, because the rght to offset s enforceable only on the occurrence of future credt events such as a default
The column ‘Related amounts not set off n the balance sheet – Fnancal nstruments’ shows the nettng mpact of our ISDA
agreements, assumng the agreements are respected n the relevant jurisdiction.
(A) FINANIAL ASSETS
The following financial assets are subject to offsetting, enforceable master netting arrangements and similar agreements.
Related amounts not set off
n the balance sheet
As at 31 December 2014
mllon
ross amounts of
recognsed
fnancal assets
mllon
ross amounts of
recognsed
fnancal labltes
set off n the
balance sheet
mllon
Net amounts of
fnancal assets
presented n the
balance sheet
mllon
Fnancal
nstruments
mllon
ash collateral
receved
mllon
Net amount
Derivative financial assets 773 (356) 417 (246) (24) 147
As at 31 December 2013
Derivative financial assets 376 –376 (82) (5) 289
(B) FINANIAL LIABILITIES
The following financial liabilities are subject to offsetting, enforceable master netting arrangements and similar agreements.
Related amounts not set off
n the balance sheet
As at 31 December 2014
mllon
ross amounts of
recognsed
fnancal
labltes
mllon
ross amounts of
recognsed
fnancal labltes
set off n the
balance sheet
mllon
Net amounts of
fnancal
labltes
presented n the
balance sheet
mllon
Fnancal
nstruments
mllon
ash collateral
pledged
mllon
Net amount
Derivative financial liabilities 870 (356) 514 (246) – 268
As at 31 December 2013
Derivative financial liabilities 395 –395 (82) –313
17 INVESTMENT AND RETURN
ASH AND ASH EQUIVALENTS
ash and cash equvalents n the balance sheet nclude deposts, nvestments n money market funds and hghly lqud nvestments
To be classfed as cash and cash equvalents, an asset must
• be readly convertble nto cash
• have an nsgnfcant rsk of changes n value and
• have a maturty perod of three months or less at acquston
ash and cash equvalents n the cash flow statement also nclude bank overdrafts and are recorded at amortsed cost
OTHER FINANIAL ASSETS
Other fnancal assets are frst recognsed on the trade date At that pont, they are classfed as
() held-to-maturty nvestments
() loans and recevables
() avalable-for-sale fnancal assets or
(v) fnancal assets at far value through proft or loss
119Unilever Annual Report and Accounts 2014 Financial statements